Investment advice: The company announced its 2013 quarterly report. The first quarter achieved operating income of 222 million yuan, an increase of 20.21% over the previous year; net profit attributable to the parent company was 344,300 yuan, an increase of 105.54% over the previous year. The company is currently the largest professional manufacturer of fine enameled wire among domestic enterprises, and the future market space is broad. The company's 2013-2014 revenue is estimated to be 1,179 million yuan, 1.51 billion yuan, and EPS is 0.14 yuan and 0.17 yuan, corresponding to the current PE share price of 36 times and 29 times, giving the company a “recommended” investment rating. Key points: The main business is growing steadily. The company announced its 2013 quarterly report. In the first quarter, it achieved operating income of 222 million yuan, an increase of 20.21% over the previous year; net profit belonging to the parent company was 344,300 yuan, an increase of 105.54% over the previous year. Since the second half of 2012, the boom in the enameled wire industry has rebounded, product orders have increased, and sales revenue has increased compared to the same period last year. The company expects a net profit range of 1 to 4 million yuan for the first half of the year. Increased profitability. The company's gross profit margin for the first quarter of 2013 was 9.87%, up 0.8 percentage points from the gross margin for the full year of 2012, and 3 percentage points higher than the first quarter of 2012. The main reason was the increase in sales share of self-adhesive wire and flat wire sales for high-end products with strong profitability, with a gross margin of more than 18%; on the other hand, the company implemented a differentiated product strategy to further explore customer needs, strengthen product development, and strictly control costs, and drive production efficiency improvements. It has the advantages of scale and technology. The company is currently the largest professional manufacturer of fine enameled wire among domestic enterprises, with an annual output of more than 10,000 tons. Compared with international companies, it has good localization advantages and rapid response capabilities. The Pearl River Delta and Yangtze River Delta regions are the main domestic demand markets for fine enameled wire, and have become one of the world's major electronic product production bases. The company is in a leading position in China in the development and production of fine enameled wire. The products have international standards in stability, finish, flexibility and consistency. The self-developed “fine high-performance enameled round copper wire” has broken the monopoly of European, American and Japanese companies in this field. Investment advice: The company is currently the largest manufacturer of fine enameled wire among domestic enterprises. The product market share is high. The products are widely used in micro motors, electronic transformers, home appliances, communications, electronic information, instruments, electric tools, automobiles, etc., and the future market space is broad. The company's 2013-2014 revenue is estimated to be 1,179 million yuan, 1.51 billion yuan, and EPS is 0.14 yuan and 0.17 yuan, corresponding to the current PE share price of 36 times and 29 times, giving the company a “recommended” investment rating. Risk warning: the risk of macroeconomic growth slowing down and fluctuating raw material prices.