Key points of the announcement The company announced the 2018 full-year results forecast. It is expected to achieve net profit of 55-0.6 billion yuan, an increase of 226%-255% over the previous year. Key investment points have won CNNC's “Hualong 1” order, and positive progress has been made in developing the nuclear power market. According to the company's announcement on January 5, the company recently won a cable order for CNNC's Fuqing 5/6 project, with a total amount of approximately RMB 18.8569 million. We believe that the order is relatively large, equivalent to more than 10% of the nuclear grade cable requirements for a single nuclear power unit, demonstrating CNNC's recognition of the company's products. For example, considering the company's previous joint research and development with CGN in the field of nuclear grade cables, the company has successfully opened two of the three major domestic nuclear power operators, and the subsequent volume of nuclear power business is worth looking forward to. The new energy, rail transit and traditional power markets are in full bloom. Recently, the company has announced the status of new orders received in the fields of nuclear power, wind power, photovoltaics, rail transit, electricity, chemicals, steel, construction, etc. According to our statistics, since November 2018, the company's cumulative new order volume in the past two months is close to 622 million yuan, equivalent to about 40% of the estimated revenue for the full year of 2018. We believe that on the one hand, the continuous increase in new orders reflects customer recognition of the company's products, and on the other hand, it also shows to a certain extent that the company's operations will continue to follow the fast track of healthy development, thus ensuring that the company is expected to maintain relatively rapid profit growth over the next two years. Investment recommendations We expect net profit from 2018 to 2020 to be 0.58, 1.02 and 200 million yuan, respectively, with year-on-year increases of 240.87%, 76.48% and 97.28%, respectively, corresponding to the EPS under current share capital of 0.12, 0.20, and 0.38 yuan/share. Maintain the company's “increased holdings” rating based on comprehensive considerations. Risk warning: New business expansion or unmet expectations, and competition in cable products may further intensify.