Upgrade the company's rating to "recommend-A". We estimate that from 2012 to 2014, the company's EPS will be 0.21,0.37 and 0.48 yuan respectively, and the corresponding dynamic Pamp E will be 32x, 18x and 14x, respectively. We believe that 1) as a leading comprehensive machine tool enterprise, the company's profitability does not reflect its actual competitive position due to the lack of cost management; 2) although it still takes time to improve industry demand, the company's high performance flexibility may develop in the second half of the year, and the current EV/EBIT is 17x, which is in a reasonable range. Therefore, the rating of the company was upgraded to "recommended-A".