Guide to this report: The company has the largest market share in banknote binding machines and the third largest market share in binding machines. Demand for traditional products is stable, and there are many new products, which is expected to drive the company into a new stage of growth. Key investment points: The recommended inquiry range is 30.2-3 3.5 yuan/share, and the reasonable pricing range is 35.5-39.4 yuan/share. We expect the company's sales revenue for 2013-2015 to be 210 million yuan, 321 million yuan, and 491 million yuan respectively; net profit of 55 million yuan, 77 million yuan and 106 million yuan respectively. Assuming that a new share capital of 7 million shares is 0.96, 1.36, and 1.86 yuan for EPS, respectively. Currently, the average PE of comparable companies in the industry for 13 years is 39 times, and the reasonable pricing range is 35.5-39.4 yuan/share, corresponding to 37 to 41 times PE in 2013. It is recommended to give a 15% discount. The corresponding inquiry range is 30.2-3 3.5 yuan/share, corresponding to PE in 2013, 31-35 times. The company is a major supplier to the financial equipment industry. Its main products include banknote binders and binding machines, RMB anti-counterfeiting propaganda workstations, etc. In 2012, sales revenue from the company's two major series of bundling and binding products accounted for 47% and 23% of revenue, respectively. Customers include banks such as CCB, Bank of China, Agricultural Bank, and Postbank. The company is a market leader in banknote binders and binding machines. In 2012, the company's bundling series products sold more than 9,000 units per year, with a market share of over 15%, ranking first in the market share; the annual sales volume of binding machines exceeded 19,000 units, ranking third in the market share. Demand for traditional products is stable, and new products are expected to drive the company into a new stage of growth. Currently, demand in the banknote binder and binding machine market is growing steadily, and the market prospects for new products such as the company's newly laid out self-service ticket machines, stamping machines, and stand-alone machines are good, which is expected to drive the company into a new stage of growth. The company plans to privately issue no more than 16.7 million shares and raise 192 million yuan in capital for projects such as bundling equipment and binding machine engineering. The construction of the fund-raising project will increase production capacity and help the company seize market share. Risk warning: New product market development risk; risk of falling or fluctuating gross margin of major products.