The margin of safety is sufficient, and a profit inflection point has appeared. The “recommended” rating is expected to achieve high growth in the company's 2014-2015 performance. The 2013-2015 EPS was 0.20, 0.39, and 0.68 yuan, respectively, and the corresponding PE was 39, 20, and 11 times, respectively. The leading marine medium speed diesel engine is sailing from inland waterway shipping to ocean; with promising strategic product prospects, the company is a leading domestic marine medium speed diesel engine, and the market share of medium speed diesel engines for inland waterway shipping ranks first in the country. The company's new strategic product, a high-power medium-speed diesel engine, is equivalent to rebuilding a “new Weichai heavy machinery”. Supporting demand in fields such as maritime surveillance vessels, offshore vessels, and pelagic fishing vessels is rapidly increasing, and the prospects are promising. Traditional business: Demand for inland waterway shipping has stabilized, the prospects for generators and marine LNG power are good, and the ship market is picking up. In 2013, the Chinese shipbuilding industry received a sharp increase of 242% over the same period last year. Inland waterways and coastal vessels tend to be standardized on a large scale to save energy and reduce emissions, and demand is steadily picking up. The market demand for generator sets exceeds that of marine medium speed motors, and the defense, communications, oil and gas sectors and exports will be a bright spot for growth; future demand prospects for overseas heavy oil generators and gas generators are promising. The company has successfully developed marine gas engines and gas generator sets, and is developing marine LNG engines. The LNG ship support policy is about to be introduced. The company occupies a central position in the marine LNG engine value chain, and the launch of the LNG ship market will drive the company's LNG engine market demand. The majority shareholder, Weichai Group, has revenue exceeding 100 billion dollars; in the future, the company will benefit from the State-owned Enterprise Reform Group Corporation, which attaches great importance to the company's development and favors the allocation of resources; the former chairman of Xigang Renewable Energy is the company's general manager, and the former general manager of Zhejiang Zhonggao Heavy Industries was introduced, etc. The company will benefit from state-owned enterprise reforms in the future, which is expected to significantly improve management and operation efficiency and raise the company's EPS and valuation level. Judging from the balance sheet, the company has plenty of cash and no bank liabilities; with a high margin of safety, the company has a market value of 2.1 billion yuan and 460 billion yuan in cash, and no bank liabilities. By the end of 2012, a total of 1.25 billion yuan had been invested in new businesses. After deducting 460 million yuan in cash and foreign investment of 1.25 billion yuan, the old business was valued at about 400 million yuan. Excluding depreciation from new businesses, etc., it is estimated that the 2012 EPS of the old business was about 0.52 yuan, and the 2012 EPS of the old business corresponds to about 15 times the current PE stock price. Risk warning: High-power diesel engines are progressing less than expected, and demand for inland waterway shipping is declining