Investment highlights: Basic data: On March 31, 2013, supermarkets and wholesale channels expanded smoothly, and an inflection point in the domestic sales business appeared, maintaining an “increase in holdings” rating. The company is expected to achieve net profit of 0.86/1.19/172 million yuan in 13-15 years (of which the 13-year performance forecast includes investment income of Yonghui supermarkets of 18 million yuan), corresponding to EPS of 0.18/0.25/0.37 yuan, and a price-earnings ratio of 26/19/13 times. We believe that the company's domestic sales business has gradually entered a period of high growth. The domestic market size of dried fruits and nuts (including roasted goods) exceeds 40 billion yuan, the fruit market is over 60 billion yuan, and the company has broad room for growth. There is still a possibility that the performance will exceed expectations, giving it an “increase in holdings” rating. Key assumptions: Assume that the company's export business revenue in 12-15 years was 2.8/3.3/4.1/490 million yuan, with a compound growth rate of 20%; domestic sales and retail business revenue was 0.58/3.27/5.50/871 million yuan, respectively, a compound growth rate of 146%; and domestic sales and wholesale business revenue was 0.6/3/4.5/600 million yuan, a compound growth rate of 115%. Different from the public perception: 1) The fruit market is large and has great potential for growth. The domestic fruit market has a capacity of over 60 billion yuan, but there is a shortage of “leading enterprises” with a complete product line in the industry. The company's products cover the three categories of fresh fruit, dried fruit, and fruit. “Origin certification” guarantees the high quality of raw materials, and the “standardized” production process ensures product quality; “no artificial synthetic additives” are in line with healthy and safe consumption trends, the brand positioning is clear, and the product market space and growth potential are great. 2) The layout of the domestic market accelerated in '13, and significant growth can be expected. In terms of channel expansion, the company signed a sales contract with Yi Jiangnan, the largest fruit trader in China. Furthermore, the company's products have been sold in various supermarket chains such as Yonghui supermarket, Bupeng Lotus, Auchan, Grand Runfa, and Yoshinoshima in the early stages. It is estimated that the shipment volume of these channels in the first quarter will exceed 155 million yuan, while the initial channel development expenses have basically been recorded in 2012, with little impact on the performance in 2013. At the same time, the company is also speeding up business expansion in e-commerce channels. 3) The supermarket sales situation is still good after the Spring Festival. Through grassroots research, we expect the first batch of the newly expanded supermarket channels mentioned above to be sold out, and the second batch has already begun. Since April, the supermarket channel delivery scale has exceeded 35 million yuan. 4) We are seeking cooperation for new orders. As the popularity of the company's products increases, we expect the company to receive new orders later. However, existing orders with supermarkets and wholesale markets such as Yonghui and Yi Jiangnan may extend delivery times. 5) Exports are showing signs of weakness. Since January, the company's apple and raisin export prices have stopped falling and stabilized. At the same time, the decline in export volume has declined from the fourth quarter of 2012. After 6 months, the export business is expected to achieve positive growth. Catalysts for stock prices: the company signs new supply orders; product sales in various channels exceed expectations; export volume, price recovery, etc. Core risks: supermarket channel delivery volume falls short of expectations; export business continues to decline; high valuations, etc.