Analysis of Future Power Market Share Data of State Power NARI

National Power Nanrui is a leading company in the field of secondary equipment for smart grids in China. Its business involves all aspects of transmission, transmission, transformation, distribution, and use. Among them, grid dispatch automation, smart substation automation, and agricultural/distribution automation services have absolute advantages. With the full construction of the smart grid, the future growth of performance is very clear. We expect that Guodian NARI will achieve revenue of RMB 6.879 billion (YOY+47.6%) and RMB 9.711 billion (YOY+41.3%) respectively in 2012 and 2013, achieving a net profit of RMB 1.275 billion (YOY+47.2%) and RMB 1.718 billion ( YOY+36.6%),EPS1.20,1.64 yuan, the current stock price corresponds to the dynamic PE in 2012 and 2013 of 27X and 20X, respectively, taking into consideration the company's industry and growth expectation, giving a “buy” recommendation with a target price of 40.0 yuan (corresponding to Dynamics of PE 33X).

In 2011, it realized a net profit of 855 million yuan (YOY+64.8%), slightly exceeding expectations: the company achieved revenue of 4.66 billion yuan (YOY+53.5%) and net profit of 855 million yuan (YOY+64.8%) in 2011, slightly higher than ours The expectation.