1. Company Profile The company is an agricultural machinery manufacturer integrating R&D, manufacturing, sales and service. It is committed to the promotion and application of modern agricultural equipment in China. The company has senior engineers with more than 30 years of experience in agricultural machinery research and development, many senior technicians with professional skills, and a technical workforce with excellent ideas and skills, so it has strong strength in agricultural machinery R&D and manufacturing. Relying on its technical advantages, the company has obtained and reserved a number of national patents. It is a high-tech enterprise supported by the state; a national three-level safety and quality standardization enterprise; and a leading key enterprise in the industrial industry in Huzhou. The company's main products are: combine harvesters, rapeseed harvesters, crawler self-propelled rotary cultivators, rice transplanters, etc. The products sell well all over the country and are exported to many countries at the same time. Its good use effect and reliable after-sales service guarantee have won the unanimous trust of domestic and foreign customers. 2. Competitive advantage 1. Performance maintained high growth. The company's net profit and operating income in 2013 decreased by 13.89% and 20.13% respectively compared to 2012; the company's net profit and operating income in 2014 decreased by 16.89% and 5.04%, respectively, compared to 2013. However, during the reporting period, the company's gross margin was at a high level, at 32.45%, 32.55%, and 30.32%, respectively. It remained stable and far higher than that of listed companies in the same industry. In 2009, the company successfully launched the “Starlight Supreme” combine harvester, which has formed an obvious brand effect. 2. Rapid market growth The company is a key enterprise that develops and produces combine harvesters in China. With the support of a series of national policies to support agriculture, benefit agriculture, and strengthen agriculture, the company closely developed, improved and upgraded the Starlight series combine harvester products during the reporting period. In 2014, it sold 8,189 combine harvesters. Currently, the products have covered the rural markets of 24 provinces, municipalities directly under the Central Government and autonomous regions, and exported to Southeast Asia, West Asia, Africa, South America and other regions through foreign trade companies. With strong differentiated competitive advantages, the company's brand influence continues to increase, the customer base continues to be consolidated, and it has established a good brand awareness and customer base in the combine harvester industry. According to the Ministry of Industry and Information Technology's demand forecast, from 2011 to 2015, the total demand for combine harvesters was about 800,000 units, with an average of more than 150,000 units per year. At the same time, the number of combine harvesters owned in China reached 1.278,800 units in 2012, which has formed a continuous need for upgrading. 3. Profit forecast and valuation. The company's EPS is estimated to be 0.70 yuan, 0.79 yuan, and 0.95 yuan after 15-17 years of dilution. The company is an agricultural machinery manufacturer integrating R&D, manufacturing, sales and service; the current issue price is 11.23 yuan, and the price-earnings ratio is 21.19 times. Considering the comparable company's valuation situation and industry growth space, a recommended subscription rating is given.