I. Overview of the incident. The company released its 2014 performance forecast on the evening of January 29. Net profit attributable to shareholders of listed companies was 709.624 million yuan to 91,2374 million yuan, a year-on-year decrease of 10% to 30%, mainly due to delays in revenue confirmation for the Hunnan Pipeline Project. According to the current progress of various businesses, we carefully adjusted the EPS for 14-16 to 0.30, 0.42, and 0.62 yuan, respectively, to maintain the “highly recommended” investment rating, with a reasonable valuation range of 23-25 yuan for 6 months. 2. Analysis and judgment. Delays in revenue recognition for pipe gallery projects dragged down full-year results. The company won the bid for the Hunnan New Town integrated pipe gallery project by BT in August 2012, with a total planned investment of 1,075 million yuan, and confirmed revenue of 258 million yuan and 593 million yuan respectively in 2012 and 13. The remaining 224 million yuan still needs to be confirmed. Revenue recognition delays due to the large revenue base for the 13-year pipe gallery and the difficulty of land acquisition and demolition in some areas in 2014, dragged down annual performance, and net profit fell by 10% to 30% year on year. Net profit after deduction fell 23.43% to 44.84% year on year. Intelligent machinery and equipment are recovering, and electrical automation and integration have maintained rapid growth. Benefiting from improved automobile sales in 2014, the company's original main business was full of orders for intelligent machinery and equipment, especially tire molding machines, and electrical automation and integration continued to grow rapidly. The total revenue of intelligent machinery equipment and electrical automation and integration in the first half of the year increased 65.35% year on year, and the comprehensive gross profit margin for the first three quarters was 33.99%, up 6.41 percentage points from the previous year. In the future, as the share of intelligent equipment and automation integration with high gross margin increases, gross margin will continue to rise. The layout of the intelligent equipment industry chain has been initially completed, and we are optimistic about the company's long-term development. The company's pipe gallery project has come to an end. The energy-consuming industrial intelligent unit integration project was completed and put into operation in September 2014, and the fully automatic radial tire molding machine project has also entered a planned state of use. The capital was previously increased in Yingcheng Juntengfa Automatic Welding Co., Ltd., and the initial layout of the intelligent equipment industry chain was completed, and the focus of the next three years will return to the main business of intelligent equipment and automation. 3. Stock price catalysts and risk alerts. Stock price catalyst: A breakthrough was achieved in epitaxial acquisitions; the company undertook new orders for smart city and municipal construction. Risk warning: The company uses BT to accept government orders, and there is a risk that repayment will be delayed; currently, the company is in a period of rapid expansion of scale and personnel, and there are certain management risks. 4. Profit forecasts and investment suggestions. At present, the company's orders for intelligent mechanical equipment and automation integrated systems are full and growing steadily. We are optimistic about the company's continuous deepening expansion in the fields of digital factories and precision machinery (electric spindles and CNC machine tools) for a long time. According to the current progress of the company's various businesses, we carefully adjusted the 14-16 EPS to 0.30, 0.42, and 0.62 yuan, respectively, to maintain the “highly recommended” investment rating, with a reasonable valuation range of 23-25 yuan for 6 months.