Key investment points: The company achieved a significant increase in performance in the first quarter of 2016, with operating income of 169 million yuan, up 141.77% from the same period of the previous year; net profit attributable to shareholders of listed companies was 21.8194 million yuan, up 304.26% from the previous year; basic earnings per share were 0.11 yuan, up 320.00% from the same period last year. Revenue and profit margins increased mainly in the first quarter of “Mengxi - Tianjin South”, “Ximeng-Shandong”, and “Shanghai Temple - Shandong”, and “Shanghai Temple - Shandong”, and “Shanghai Temple - Shandong”. The annual expense ratio for the first quarter was 23.34%, with significant year-on-year improvements, mainly due to a sharp increase in the company's revenue while the three major expenses were relatively stable. The gross profit margin for the first quarter was 39.11%, up 6.28 percentage points from 2015, mainly due to an increase in the share of UHV products with high gross margin. The net profit margin was 13.39%, an increase of 7.46 percentage points over last year, which is the highest level in history. We have always firmly believed that in the context of the acceleration of UHV, the company will usher in a double increase in revenue and profit margins. The capacity utilization rate has greatly increased in terms of production capacity. The company is currently operating at full production. After run-in and adjustment in the past year, the capacity utilization rate in the Double D port area has increased dramatically, and the production capacity of the Fujian factory has also effectively shared the production tasks of conventional products, which means that the company's extreme production capacity may exceed our expectations. According to the State Grid's plan, a total of 13 “five transports and eight straight” UHV lines will be approved in 2016, which is 1.625 times that of 2015. If the State Grid can complete the plan at the beginning of the year, the company's performance will further increase this year. The leading position is stable and profit margins remain high. Currently, the capital market has two main concerns about the porcelain insulator market: 1 is that the State Grid's recent bid share tends to be diversified; 2 is that the bid price won in 2015 tends to win the bid at the lowest price. Our opinion on this is as follows. First, the UHV insulator market has a very high threshold. There are only four companies: Dalian Electric Porcelain, Su Ci, NGK, and Inner Mongolia Jingcheng. Looking back at the bid results in 2015, NGK and Inner Mongolia Jingcheng cannot guarantee the winning bid rate due to several reasons. Only Dalian Electric Porcelain and Su Porcelain have stable bid winning capabilities, regardless of quantity or bid amount, the company is still in the leading position. Second, we are currently in a golden period of development for UHV equipment vendors. All companies also have saturated orders, and there is no incentive to deliberately lower prices in order to win bids. Production capacity is the bottleneck of profit for all companies. Therefore, maintaining a relatively reasonable profit margin level in 2016 is the common demand of all companies. We believe that the company's porcelain insulators will still maintain a high level, and this has been confirmed by the quarterly report. The company focuses on the production of porcelain insulators. Among UHV primary equipment companies, the company has the characteristics of high performance elasticity, while the company's total market value in the secondary market (as of April 28, 2016) is 4,031 billion yuan, and the market value in circulation is 2,923 billion yuan. It has the characteristics of high stock price elasticity. We think it is a scarce UHV sensitive target in the A-share market. We are optimistic about the high prosperity of the UHV industry in the past two years and the company's development prospects. We expect EPS to be 0.46, 0.55, and 0.67 yuan/share in 2016-2018, maintaining an increase rating.