Investment suggestion: Hongte Precision is a leading manufacturer of automotive aluminum alloy precision die-casting parts in China. Its main products are used in engine and transmission manufacturing for mid-range and high-end automobiles, and it has a high level of technology and process. The company's auto parts products are positioned as middle and high-end customers, and have entered the supply system of many foreign joint ventures and wholly owned brands including Ford, Cummins, and Fiat. Recently developed customers include BMW Brilliance, Chrysler, Dongfeng Nissan, etc. The recognition of many mid-range and high-end automakers has become an important intangible asset for the company, which also shows that the strong R&D and manufacturing capabilities accumulated over the years are beginning to bring rich rewards. Under the trend of lightweight automobiles, the market potential for aluminum alloy die castings is huge, and the cost advantage will accelerate the pace of transfer of the entire industry to China. We expect the company's main revenue from 2010 to 2012 to be 378 million yuan, 510.1 million yuan and 725 million yuan respectively, and net profit attributable to the owners of the parent company to be 40.48 million yuan, 61.15 million yuan and 8884 million yuan, respectively. The earnings per share diluted according to the total share capital after listing are 0.45 yuan, 0.68 yuan and 0.99 yuan, respectively. Taking into account the company's growth, the valuation level of the same industry, and recent GEM IPO, we gave the company 23-28 times PE for 2011, with a corresponding value range of 15.73-19.15 yuan, and we recommend purchasing. Risk warning: (1) the prosperity of the automobile industry has declined; (2) the price of raw materials has fluctuated greatly in the short term.