Based on the current total share capital of 186.85 million shares, we predict that the EPS of the company from 2007 to 2009 will be 0.20,0.31 and 0.52 yuan, and the reasonable share price of the company will be 15.00-16.00 yuan according to the 30 times price-to-earnings ratio of the machine tool industry in 2009. The above forecast is based on the premise that the company mainly relies on the current Qinghai production base to arrange production. If the company expands its production base to the coast in the future, the capacity expansion will exceed our current estimated level.