In 2009, the company realized operating income of 2.116 billion yuan, an increase of 66.10% over the same period last year; total profit of 79.33 million yuan, an increase of 556.21% over the same period last year; net profit of 51.37 million yuan belonging to shareholders of the parent company, an increase of 293.6% over the same period last year; and earnings per share of 0.18 yuan. The cash dividend is 1.50 yuan (including tax) for every 10 shares.

Diesel engine main business revenue increased by 65%. Diesel engine business accounts for 82.5% of revenue. The company mainly produces 4-cylinder small-diameter diesel engines, supporting light trucks, construction machinery and agricultural machinery. The top three customers are BAIC Foton, Foton Leivo International heavy Industry and Jianghuai Automobile, which benefited from the policy stimulus in 2009. Led the company to sell 364500 multi-cylinder diesel engines, an increase of 76% over the previous year. In 2010, subsidies for the purchase of agricultural machinery are expected to continue to increase, the variety of agricultural machinery subsidies will increase, and the scope will continue to expand; the state will vigorously develop the automobile industry, the automobile policy to the countryside will continue, and the company's diesel engine sales are expected to grow further.

The comprehensive gross profit margin increased by 1.61 percentage points. The company's comprehensive gross profit margin increased to 10.49% from 8.88% in 2008. Due to the low prices of raw materials such as steel in 2009, the gross profit margin of diesel engines increased from 8.07% to 11.45%, an increase of 3.38 percentage points. The gross profit margin of the company's building materials business increased significantly, from 7.78% in 2008 to 14.97% in 2009.

Central-enterprise cooperation and Wanjiang planning provide development opportunities. In December 2009, Hengtian Group and Quanjiao County Government signed a cooperation framework. In the next three to five years, Hengtian Group and Hengtian Group jointly invested 1.5 billion yuan to integrate the engine business of Quanchai Group, making the sales income of Quanchai Group reach 10 billion yuan. At present, the group's income is only more than 2 billion yuan, and there is a lot of room for development in the future. In addition, Chuzhou has been included in the Wanjiang city belt, and the new policy is expected to be beneficial to the future development of the company.

We expect the company's 10-12 earnings per share to be 0.2 yuan, 0.34 yuan and 0.41 yuan. According to the latest closing price, the company's 10-12 dynamic price-to-earnings ratio is 57.82 times, 32.98 times and 27.77 times, respectively. Give the company an investment rating of "short-term _ neutral, long-term _ A".