Qinghai Huad (600243) company's business is mainly divided into five parts, among which machine tools, gears and structural components face good development opportunities: at present, the company's machine tool manufacturing business shows a significant capacity bottleneck. The company plans to issue directional increase separately to invest 1.2 billion yuan and 0.8 billion yuan in heavy horizontal lathes and high-end CNC machine tools for technological reform and capacity expansion. It is expected that the production capacity will be gradually released in 08 and 09; the company's gearbox advantage product is hydraulic shifting gearbox, which occupies 50% of the domestic market share of this type of product. After technical renovation and expansion, it is estimated that the sales revenue in 2007-2009 will be increased to 683.8 million yuan, 975.2 million yuan and 1.3912 billion yuan; large petroleum machinery structural components products become the new profit growth point of the company. Through directional increase issuance, the company will invest 1.2 billion yuan in this product. The insider prompt indicates that the sales revenue in 2007-2009 is expected to reach 478.6 million yuan, 1.03 billion yuan and 1.54 billion yuan. Now, the industry prosperity may cause adjustments to the shareholder structure and the production structure of the company. Shanda Huat (000915) company's holding subsidiary Shanda Huat Environmental Protection Company is a domestic giant subcontractor for flue gas desulfurization projects of large coal-fired boilers. The company has introduced flue gas desulfurization technology with international advanced level, and owns an internationally leading flue gas desulfurization R&D center. It is a national key laboratory for flue gas desulfurization and a production base for flue gas desulfurization equipment. Its desulfurization technology is leading domestically. Earlier, the controlling subsidiary Shandong Shanda Huat Environmental Engineering Co., Ltd. signed a contract with Shandong Century Power Development Co., Ltd., with a total contract value of 1.12 billion yuan. The insider report indicates that the company acquired 29.8% equity of Shandong Shanda Huat Environmental Engineering Co., Ltd. held by Shandong Chenliang Holding Co., Ltd. for 50.064 million yuan in cash. The environmental engineering company mainly engages in atmospheric purification treatment such as flue gas desulfurization and dust removal in power plants. In the whole year, it completed main business revenue of 1.88 billion yuan and net profit of 68.2 million yuan. The company stated that after the completion of the original main acquisition, the company will hold 100% equity of the environmental engineering company, which will play an active role in strengthening the company's environmental protection business and enhancing the company's profitability. Weifu Xink (000581) because energy conservation and emission reduction have been promoted nationwide as a comprehensive measure in China, the market for energy-saving products will continue to grow. The holding subsidiary Weifu Lida of the company is one of the two major R&D bases for automobile exhaust purification in the country's "863" program, and also the only industrialization base for automobile exhaust pollution control in our country. Its muffler catalytic converter business relies on independent innovation to rapidly replace imports, and its future growth potential is huge. Together with the rapid development of China's automobile industry, it also leads to the steady growth of the company's performance. The insider report indicates that the company expects the full-year performance in 2007 to increase by 50%-100% year-on-year. In the future, with the strict implementation of energy conservation and emission reduction policies and the continuous development of China's automobile industry, the company's development prospects are optimistic. Zhongjie Share (002021) is a private industrial sewing machine enterprise with relatively strong comprehensive competitiveness in the country. Due to the downstream customers of the industrial sewing machine industry being garment companies, they are greatly affected by economic cycles. Considering the upgrading of consumption brings about the increase in the number and quality of clothing owned per capita, the sewing machine industry still has a relatively long growth period. In addition to total growth, Chinese large-scale garment enterprises use imported sewing equipment for processing high-grade fabrics, with an annual expenditure of around 2.5 billion yuan. Therefore, Zhongjie's market development space is still very large. The insider report indicates that from the perspective of industry integration, the concentration of the industrial sewing machine industry is still very low, and there is still room for industry integration in the future. Although Zhongjie is not a single weak enterprise, it has a greater possibility as one of the industry integrators. Shenghua Baike (600226) As the largest zirconium producer in the country, it is also one of the largest new pharmaceutical and veterinary medicine producers in the country. It has been recognized by the Ministry of Science and Technology and the Chinese Academy of Sciences as a key national high-tech enterprise. It is the national biological pharmaceutical base designated by the Ministry of Industry and Information Technology, and the national fine chemical base established by the former Chemical Industry Department. It is increasingly becoming the largest zirconium producer in China and is known as the "zirconium metal hegemon"! Zirconium revenue has gradually become one of the pillar products of the company, and the bulk sale of zirconium will become a new profit growth point of the company. The insider report indicates that the company has also invested in the real estate industry and established Tongcheng Xinhu Shenghua Real Estate Company. Its real estate development conditions are mature, with complete supporting facilities, which will bring more profit income to the company, and its future development is worth looking forward to. Haoke Share (600337) The company's main business includes the production and sales of decoration, construction materials, solid wood furniture, particleboard furniture, and related products; self-operated import and export business of various goods and technologies. The company's public offering of stocks was completed on October 24, 2007. The consolidated scope of the company's financial statements has increased to include Tianjin Meike. The company has announced that the net profit for 2007 will increase by more than 200% compared to the same period last year. The holding subsidiary Meike International Wood Industry (Tianjin) Co., Ltd. invested in and built a dining table and chair workshop in Tianjin, and the expansion of a seating furniture production line injected into the company by Meike International Home (Tianjin) Co., Ltd. went into operation in the second half of 2007. After these projects are completed, the added output value will reach 4 billion yuan. It is expected that 25% of the designed production capacity will be reached in 2007, contributing 1 billion yuan in revenue, and the basic production capacity will be reached in 2008. The commissioning of these projects will restore the growth of furniture manufacturing industry revenue. The insider report indicates that the company issued 24.4 million A shares to four institutions at 21.5 yuan per share. China Merchants Fund, Guojin Securities, HSBC Jinxin Fund, and New China Life Insurance subscribed for 9 million, 7.6 million, 4 million, and 3.8 million shares respectively, with a lock-up period of 12 months. The net proceeds raised amounted to 514.1 million yuan, which will be used to acquire the remaining equity of Tianjin Meike. Tsinghua Stock (000938) Recently, the company jointly established Tsinghua Pictorial Company with L.L.C., specializing in the research, development, sales, and provision of extensive pictorial processing and outsourcing services of computer-related pictorial software and hardware products, with strong professionalism. The establishment of Tsinghua Pictorial will expand the existing operating scale of the company and enhance its market competitiveness in the field of pictorial management and services. The company's main product, Tsinghua Scanner, has ranked first in domestic market sales for ten consecutive years. The company's investment in Tsinghua Bywill Network is a leading domestic network equipment supplier and the first company in China to provide IPv4/v6 dual-stack core routers, with a very obvious market advantage. Red Ridge Insider Report indicates that the company actively enters the information electronics industry and environmental protection industry relying on Tsinghua University's abundant scientific research capabilities. The main business of Beijing Luchuang Environmental Protection Group Co., Ltd., a subsidiary of the company, is automotive three-way catalysts and automotive silencers, environmental protection equipment, and the import and export of environmental protection projects. The policy-driven green Olympics has provided great support to the company. What is particularly noteworthy is that the company holds 16% equity in Tsinghua Sci-Tech Innovation Investment Co., Ltd. (its largest shareholder). Tsinghua Innovation Investment Co., Ltd. aims to create a perfect combination of venture capital and high-tech or high-growth enterprises. With the introduction of the Growth Enterprise Market (GEM), the well-cultivated high-quality companies will undoubtedly bring rich returns to the company in the capital market, appropriate attention should be paid. Yuanwang Energy (000683) The company has continuously invested in the field of new energy products such as methanol. Among them, the gross profit margin of the methanol product is as high as 41.42%, and the proportion of new energy products in the company's operations continues to increase. Red Ridge Insider Report reveals that the company's cash increase in capital holdings in the new energy base has reached 55%. This has fundamentally changed the company's business. Recently, the company announced receipt of a letter from the Oil and Gas Sales Company of Foreign Petroleum Changqing Oilfield regarding the price increase of natural gas. Starting from November 10, 2007, the factory price of natural gas supplied by the oilfield to Yuanwang United Chemicals will increase by 400 yuan per thousand cubic meters. Despite the cost increase, the stock price remains unaffected, showing clear signs of upward movement by large funds. There are many topics that cannot be revealed in the insider reports, but our fund has heavily positioned itself, making it inappropriate to chase highs or track further attention. Dongbai Group (600693) The company is the leading department store retailer in the Fuzhou area, owning three department stores in Fuzhou and occupying prime commercial districts in the region. In terms of business strategy, the company has made significant brand adjustments to children's malls, sports malls, and home furnishing malls, expanding its department store chain through mergers, acquisitions, and new establishments. While possessing exclusive advantages in the Fuzhou commercial center area, the company is also striving to create the "Eastern" premium brand, targeting high-end consumers. Red Ridge Insider Report indicates that after successfully leasing the Li Jia Grand Plaza commercial project, the company now controls nearly 10,000 square meters of commercial real estate in the central business district of Fuzhou's Dongjiaomen area, beginning to develop towards regional chain department stores. The company's occupation of the Yuan Hong Plaza (with a lease area of approximately 82,000 square meters) located in the commercial core of Taijiang District, Fuzhou, has become the largest comprehensive shopping center in Fuzhou and even Fujian Province after its opening. On January 11, 2008, the company's major shareholders signed an equity incentive agreement with the management team (successfully implementing management equity incentives), and the company is one of the individual stocks we focus on in the commercial sector, closely monitor. Fei Yin Electronics (600651) After years of development, the company has formed three major industries: IC cards, digital electronics, and hardware. Its products are sold in more than forty countries and regions worldwide, and it has established stable cooperative relationships with renowned international enterprises such as RENESAS, Panasonic, Osram, Philips, Hitachi, Pioneer, and Sony. Meanwhile, the company acquired 90% of the equity in Shenzhen Lihe Digital TV (the transferor committed that the company's net profit would reach 120 million yuan over three years). Shenzhen Lihe is a high-tech enterprise under the Shenzhen Tsinghua University Research Institute specifically engaged in terrestrial digital TV operations and is the implementation entity for the industrialization of Tsinghua University's DMB-T terrestrial digital TV. By acquiring equity and entering the digital TV field, the company will gain new development opportunities. The company also holds a controlling stake in Jiuzhou Mengwang, the largest broadband entertainment portal website in the country. Jiuzhou Mengwang mainly operates broadband internet online audio and video and mobile phone streaming media digital audio-visual entertainment businesses. It has nearly ten million registered users and one million stable paying users, accounting for nearly 50% of the trading volume on the VNET national broadband film and television value-added service platform, with business revenue growing at a rate of 100%. Red Ridge Insider Report indicates that Shenzhen Tsinghua Lihe Venture Capital Investment Co., Ltd., the largest circulating shareholder of the company, is a venture capital enterprise with characteristics of a high-tech incubator, relying on Tsinghua University's technical and talent advantages. The venture capital sector will be launched within the year. The company is also the second-largest shareholder of Huaxin Securities, holding 240 million shares of Huaxin Securities, which has already brought extremely rich returns. Attention can be appropriately given when the annual report season arrives. Keyuan露含 (000848) The parent company is the largest apricot kernel-containing enterprise in the country, with an annual production capacity of 300,000 tons, and a market share of over 90%. Through more than twenty years of operation, it has become very mature in agricultural techniques and has become the company's core competitiveness. After restructuring (changing from state-owned system to private system through state-owned share purchase), the company divides the sales area into five major zones: Northeast, Southwest, Beijing-Tianjin-Hebei, Henan-Hebei, and Shanxi, adopting small area management. This marketing system is expected to increase sales volume to 130,000 tons in the second half of 2007, an increase of about 40% year-on-year, changing the situation of stagnant revenue in recent years, showing a high growth trend. Insider reports indicate that Vanke Investment Co., Ltd. is a holding subsidiary of Wanxiang Group. To avoid the confrontation between Wahaha and Danone over the "Wahaha" trademark in court, Wanxiang Investment entered the company and successfully purchased the "Keyuan" trademark from the group company for 300 million yuan (the company only had usage rights before), ensuring the company's long-term healthy development. At the same time, the equity incentive plan to be implemented soon will bring ample income motivation to the management layer. Recently, the stock accumulation momentum is sufficient, appropriate attention can be given. Liaoning Chengda (600739) The company holds 546.11 million shares of GF Securities, making it the largest shareholder. The company's third-quarter report in 2007 showed earnings of 1.98 yuan, with net profit increasing by 800%-900% year-on-year. Since the beginning of the year, GF Securities' brokerage, investment banking, and proprietary trading have all grown rapidly, and the creation of warrants has also generated about 600 million yuan in profits. The future development of the securities industry will bring rapid growth opportunities for GF Securities, and the company's equity investment returns will be even more可观. Insider reports indicate that if GF Securities successfully lists, the large amount of equity will bring tremendous gains to the company, with net assets likely reaching at least 60 yuan. Currently, the company's main business has shifted to become a large cross-industry, cross-regional comprehensive enterprise integrating international trade, pharmaceutical chain, commercial investment, and financial investment. The human rabies vaccine produced by the biological sector already accounts for more than 20% of the domestic market share. With the addition of new production capacity, expansion into overseas markets, and the launch of animal rabies vaccines and Japanese encephalitis vaccines, this segment's revenue will continue to grow rapidly. Based on fund position records, there has been a significant increase in holdings. Other companies that hold a large amount of GF Securities equity include Jilin Aodong (000623) and Public Technology (000685), worthy of close attention during the annual report season. Shanghai Airlines (600591) The company is based at the Shanghai airport and, in the domestic market structure, is a medium-sized airline operation company only smaller than the three major airline groups and Hainan Airlines. It has been listed by the Shanghai municipal government as one of the 54 key large enterprises to be supported and one of the first batch of pilot enterprises for modern enterprise systems. Since aviation fuel needs to be imported in large quantities, combined with the fact that whether short-term or long-term debt repayment, financial leasing, or operational leasing payable accounts, all are mainly denominated in US dollars, even a small appreciation of the Renminbi will significantly impact the company's performance changes. Insider reports reveal that the company is located in the East China region of Shanghai, which is the largest aviation market in China and also an important international gateway. The obvious regional advantages make the company a target for domestic and international aviation giants to "court." Currently, at least Air China, China Eastern Airlines, and All Nippon Airways (Japan) have shown interest (although the company indicated in September that there were no restructuring plans for the next three months, this period has now ended). Under the backdrop of large-scale restructuring in the aviation sector, close attention is warranted. Xiamen Guotai (600755) The company has successfully transformed from an enterprise mainly focused on foreign trade. Currently, in Xiamen, there are many large groups that control resources. Commerce, port logistics, and real estate have become its pillar main businesses. The real estate business is the primary source of profit growth for the company in the next three years. The company currently owns housing with a construction area of 320,000 square meters and land reserves on Dacheng Island, sufficient for the company's continuous development over the next 3-5 years. The latest regulatory policies by the government on real estate land will promote the company to accelerate land development. Insider reports indicate that the company is continuously integrating logistics businesses and can now operate the entire logistics industry, including ports, warehousing, stacking yards, maritime transport, air freight, customs clearance, and shipping agency services. The company's docks No. 20 and No. 21 have already been put into operation, with both the scale and revenue of dock operations facing significant increases. Meanwhile, the wholly-owned subsidiary Xiamen Guotai Futures Company has obtained the two licenses for financial futures brokerage business and trading settlement business. The stock price has broken out strongly, warranting short-term attention. Shaanxi Jin Ye (000812) As a supporting enterprise for well-known tobacco manufacturers such as Baoji Tobacco Factory and Yan'an Tobacco Factory in Northwest China, the company is a major printing base for cigarette packaging in Northwest China. It currently has an annual production capacity of 600,000 large boxes of soft cigarette packs, 550,000 large boxes of convex printed flip-open cigarette packs, 130,000 large boxes of offset printing, and 120,000 large boxes of intaglio printing, maintaining a dominant market position in Shaanxi Province for a long time. After the Wanyu Group (a Sino-foreign joint venture established by investments from Hong Kong Wanyu Group Development Co., Ltd., the Asset Supervision and Administration Committee of Shaanxi Province, and Shaanxi Century Color Printing Co., Ltd.) successfully took control of the company, through continuous resource integration, the company has gradually developed into the largest printing entity in western China. The major shareholder is also involved in real estate, cultural industries, pharmaceuticals, and securities investment, among other fields. With deeper optimization of resource allocation for the company, it will bring enormous imagination space. Insider reports indicate that the company early invested 150 million yuan to participate in Western Trust Investment Co., Ltd., one of the