The company's current main business will remain stable, but its core logic is that the market capitalization is small but there is a lot of capital on hand (1.1 billion dollars in hand at the end of the 13H1 period, market value of 2.4 billion after closing in 2013-8-19). ROE is at the lowest level in history, and there is plenty of room for improvement in the future. We expect EPS for 13-15 to be 0.39, 0.52, and 0.75 yuan, respectively, to maintain the “prudent recommendation” investment rating, and increase to 11-13 yuan according to reasonable valuations of 30 times PE in '13 and 20 times PE in '14. Stock price catalysts and risk alerts Risk warning: 1. Domestic economic recovery is weak, and investment in manufacturing falls short of expectations; 2. Gross profit declined due to intense market competition. Stock price catalyst: Increased efficiency of capital utilization; domestic demand or exports exceeding expectations.