The main investment and product structure have been adjusted, and the performance of the headquarters has bottomed out and rebounded. The share of steel smelting equipment fell to 1.7%, and the negative impact of the industry downturn on the company was limited. Differences in electricity costs etc. in various regions have brought about a shift in production capacity in the non-ferrous metal smelting industry, driving steady growth in the company's aluminum smelting and lifting equipment; secondly, the penetration rate of automation in the non-ferrous metal smelting industry continues to increase, and the subsidiary Eurico is expected to continue to maintain a growth rate of more than 100%. Huaxin Mechatronics is full of orders, and high growth in 2017 can be expected. Demand for new equipment is brought about by aluminum smelting companies that build their own power plants. Huaxin Electromechanical has a high level of brand recognition within the power system and outstanding ability to take orders. It is estimated that Huaxin Electromechanical's orders this year will reach about 1 billion yuan, an increase of more than 50% over the previous year. The new energy industry is expected to grow into a pillar sector, and intelligent three-dimensional garages will bring performance growth points. At present, the company's share of wind power equipment revenue has risen to 12%. The company has successively invested in Inbol and set up a new energy industry fund to enter the field of new energy vehicles. Continuous capital operation reflects the company's determination to develop the new energy industry, and the new energy industry is expected to grow into the company's pillar sector. Furthermore, the company established Tianqiao Liheng to enter the field of intelligent three-dimensional garages, bringing new growth points. Management holds 6% of shares to guarantee strategic execution, and the increase in shareholders' holdings shows confidence in development. Although the company is a state-owned enterprise, the management holds 6% of the shares, the management is in line with the company's long-term development interests, and has strong strategic execution. Since May of this year, the majority shareholder Zhuzhou SDIC has successively increased its holdings from the secondary market by 25.14 million shares, accounting for 2.98% of the company's total share capital, which also shows confidence in the company's future development. Profit forecast and rating: It is estimated that the company's EPS from 2016 to 2018 will be 0.14/0.23/0.27 yuan, and the corresponding PE will be 49x/31x/26x respectively. The company's traditional business has bottomed out. It is optimistic that the company's new energy industry layout will continue to advance, and it has been upgraded to a “buy” rating. Risk warning: 1) fixed asset investment in the metallurgical industry continues to decline sharply; 2) business integration risks.