Key points of the announcement The company announced its 2018 annual report. Operating revenue increased 72.29% year over year to 1,575 billion yuan, and net profit increased 243.4% year over year to 579.768 million yuan, in line with our previous expectations. Key investment areas have fully blossomed, and business development is on the fast track in various fields such as traditional markets, rail transit, new energy, and overseas. In 2018, the company achieved revenue of 766 million yuan in traditional downstream electrical equipment, metallurgy, petrochemical and other fields; in the first year after entering the rail exchange domain, the company participated in subway construction in more than 10 cities and the construction of intercity rail railways such as the Shanghai-Nanjing Line and Changgang Line, achieving revenue exceeding 158 million yuan; orders from companies in the field of nuclear power, photovoltaics, wind power continued to increase, and achieved revenue of 188 million yuan, an increase of 150.25% over the previous year; overseas, continued to promote joint overseas travel, with revenue growth of 33.3% year-on-year, reaching 33.3% year-on-year. Revenue scale of 170 million yuan. Furthermore, according to our statistics, from November 2018 to the end of February 2019, the company has successively signed more than 1.05 billion yuan of orders, which is equivalent to 67% of 2018 revenue. The order volume is full, providing favorable conditions for subsequent production scheduling and preparation. We believe that the company's business has fully blossomed in many fields and is gradually entering the fast track of development. With the expansion of subsequent business areas, the volume of revenue is expected to continue to grow. Structural optimization combined with efficiency improvements, and product profit levels continued to improve. Since 2018, the company has continuously optimized its customer structure and product structure, and achieved breakthroughs in the fields of nuclear power and rail transit, and the overall gross margin level increased by 2.18 percentage points; in addition, the effects of the company's lean management were reflected, improving capacity utilization through reasonable production scheduling, which increased processing gross margin by 0.98 percentage points; in terms of cost control, the company's strict budget control in 2018 achieved a 1.08 percentage point reduction in the cost rate during the period. Among them, the sales expenses ratio and management expense ratio were different Decreased by 0.84 and 0.61 percent. We believe that under favorable conditions where customers and product structures continue to be upgraded and orders are still full, the gross margin level of the company's products is still expected to increase further, and the cost ratio for the period will be further reduced, thus driving the profit level to continue to improve. Investment recommendations We expect net profit of $1.08, 2.02 and 251 million yuan respectively for 2019 to 2021, up 85.85%, 87.07%, and 24.39% year-on-year respectively, corresponding to EPS of 0.21, 0.39, and 0.48 yuan/share under current share capital. Based on comprehensive considerations, the company's “gain” rating was maintained. Risk warning: New business expansion or failure to meet expectations, cable product competition may further intensify.