A leading domestic rubber machinery company. The company is a leading domestic enterprise that develops and manufactures a series of high-grade, opto-mechatronic integrated radial tire production equipment for various engineering, load, passenger, aviation, etc., and is also a company specialized in developing non-standard equipment for other industries. The company currently has an outstanding market position for its leading products, and the market share of its main products can reach more than 50%. Rapid growth in the automotive industry, increased meridian rates, and exports drive the industry's continued growth. China's rubber machinery industry has maintained a rapid development momentum for many years, thanks to the steady growth of the domestic macroeconomic economy, China's cheap labor force, and the shift of the world tire industry manufacturing center to a difficult situation. In 2008, industry revenue was 8.5 billion yuan, accounting for about one-quarter of the world's total revenue for rubber machinery. In the future, the continued growth of China's rubber machinery industry will come from three aspects: 1. Rapid growth in China's automobile industry; 2. Increased tire radicalization rate; 3. Exports will maintain high growth. Technology protects the driver, and marketing promotes development. The company has outstanding ability to independently develop new products, fill gaps in the country many times, and lead the industry forward. It is worth mentioning that the complete set of all-steel engineering radial tire equipment developed by the company is the only national science and technology progress award in the industry. Compared with its outstanding technical advantages, the company's marketing system is still relatively weak, which is a “shortcoming” of the company's development. In the next 3-5 years, the company will integrate the existing marketing system, hoping to promote the comprehensive development of the company's business. The development of aviation equipment and other non-standard equipment fields is expected to become a new profit growth point for the company. Considering that the market for the rubber machinery industry is small, the company is actively expanding into other non-standard equipment industries. The company has now successfully signed a fixture project for the European Airbus A320 and A350 aircraft and entered the aviation equipment field. At the same time, the company is also considering developing into other non-standard equipment fields to seek greater development potential. Furthermore, the listing raised 744 million yuan in capital, which is sufficient. While its financial expenses have been drastically reduced, it is also expected to contribute to the increase in performance in 2010. Risk factors: market competition risk, technical risk, and exchange rate fluctuation risk. Profit forecast, valuation and investment rating: Considering industry development prospects, company competitiveness, and future growth, as well as the valuation level of comparable companies and the current situation where the valuation level of the SME version of the IPO is generally high after listing, we believe that Saixiang Technology's short-term reasonable market price is 42 yuan, corresponding to 30 times PE in 2011. For the first time, we gave the company an “increase in holdings” rating.