Profit forecast and valuation We expect the company's earnings per share for 2011-2013 to be $0.55, $0.64, and $0.79, respectively. Based on the company's future performance growth in the fields of submarine cables, coal mining machine cables and cable accessories, etc., and the valuation level of peers, the company was given a price-earnings ratio of 25-30 times in 2012, with a reasonable value range of 16.00-19.20 yuan. Combined with the current stock price level, we maintain a “neutral” investment rating.