Investment points: Positioning high-end automotive precision aluminum alloy die-casting enterprises: The company focuses on the development, production and sales of aluminum alloy precision die-casting parts and assemblies for automobile engines and transmissions. Its main products are used in the manufacture of engines and transmissions for medium and high-end automobiles. Industry competition pattern: The overall level of domestic die casting companies is low, and the industry concentration is very low. It is mainly divided into professional die-casting enterprises and supporting die-casting enterprises within automobile groups. The company is a professional die-casting enterprise, and its main competitor is Guangdong Hongtu, etc. Rich customer resources and good growth momentum: the company has become a first-class supplier for brands such as Ford, Fiat, Cummins, Chrysler, BMW, Dongben Engine, Changan Ford Mazda, and Dongfeng Nissan. Benefiting from the rapid growth of domestic automobile sales and the recovery of the international automobile market, the company's growth momentum is good. Strong technological innovation capability and cost advantages: The company focuses on research and development, and has established the Guangdong Hongte Auto Parts Technology Center with South China University of Technology, using the talents and technical strength of Hunan University's “National Auto Parts Research and Development Test Center” to help the company enhance its technical strength. Through mutual cooperation and simultaneous research and development with customers, the company forms its own core technology, creates original processing technology, optimizes production processes, and enjoys cost advantages. Fund-raising projects will enhance the company's competitiveness: Fund-raising projects mainly include automobile precision die-casting parts production expansion projects and light alloy precision molding engineering center construction projects. After the project is delivered, the production capacity will double from the original annual output of 60 million tons, ease the pressure on the company's production capacity, improve the technical level, improve product quality, and lay a solid foundation for the company to develop markets. Profit forecast and valuation: We forecast that the company's operating income for 2010-2012 was 381 million, 523 million, and 740 million yuan, respectively, up 28.7%, 37.2%, and 41.4% year on year; net profit was 40 million, 61 million, and 92 million yuan respectively, up 15.5%, 53.8%, and 50.3% year on year, respectively. Based on the total share capital of 89.4 million shares after issuance (assuming the issuance of 22.4 million shares), the EPS for 2010-2012 was 0.45 yuan, 0.69 yuan, and 1.03 yuan, respectively. The recommended inquiry range is 19.32-22.08 yuan.