> China Heavy Industries (601 989): structural optimization of the leading naval equipment, sail events: Annual Report and 2010 the company released a quarterly operating income 53.93 billion yuan (completed in February 2011 according to the first injection of adjusted assets), an increase of 20.8% , net profit attributable to shareholders of listed companies 4.3 billion yuan, up 21.3%, corresponding to earnings per share of 0.47 yuan while the first quarter of 2011 the company achieved operating income of 12.45 billion yuan, an increase of 9.5%, net profit attributable to shareholders of listed companies 1.32 billion, an increase of 28.7%, corresponding to earnings per share of 0.14 yuan. Investment Highlights: 1, China's largest listed companies ship the company completed the first quarter of 2011, the ship Heavy Industries shipyard and other four-core assets into a listed industry leading enterprises in 2010, completed an annual volume of 9.003 million DWT shipbuilding, revenue 31.45 billion yuan, reaching a record high, the annual new ship orders received 7.32 million deadweight tons, the total value of $ 24.1 billion at the end of the cumulative holding orders 26.57 million deadweight tons At the same time, the company R & D in large lng ship made great breakthroughs in the future will to some extent, enhance the company's shipbuilding business profitability. 2, product mix continued to improve.'s energy and transportation equipment business in 2010 operating income of 4.79 billion yuan a substantial increase of 47.4% year on year, new orders 11.36 billion yuan the year, accounting for 20.0% of total contract value, while the proportion in 2010 was only 8.9% of the business company there are two highlights worth noting: self-made ships' ballast water treatment system approved by imo, are at present experimental ship smoothly; marine areas, independent research and complete 300-feet jack-up drilling platforms, and has started the construction of projects of foreign orders, 300 tons electric mooring winches bulk orders to achieve this two business room for future growth is enormous. 3, military assets more complete, the aircraft carrier concept raised concerns for the second time into the assets, the military shipbuilding industry is an important naval vessels manufacturing and assembly enterprises, mainly engaged in Binh Duong Heavy Navy underwater weapons assembly, as well as South Africa is China's naval equipment and night vision periscope observation instrument of the major providers, and a separate track to the Army to provide optical observation equipment in the past 10 years, China's defense expenditures are the growth rate remains above 10 percent, 2011 amounted to 601.1 billion yuan in investment, said to about 1 / 3 toward the Navy, the military operations last year grew by about 6.0%, future growth is expected to grow faster. our modification of the aircraft carrier purchased from Ukraine, the issue has been attracting a lot of attention, multiple sources said this year's may be launched, the event is expected to present a positive impact on the company's share price. given rating "recommended-a". We expect the company in 2011, 2012 and 2013 net profit was 5.71 billion yuan, 69.1 billion yuan and 8.16 billion yuan, eps ( diluted) were 0.56 yuan, 0.68 yuan and 0.80 yuan, respectively, corresponding to the dynamic price-earnings ratio of 21.0 times, 17.3 times and 14.7 times our investment rating given to "recommend-a". Risk Warning: the cost of iron ore price increases the risk of , exchange rate risk, and risk-adjusted national defense strategy. (Xiao Shijun States Securities Research Center) Shanghai Pharmaceutical (601607): pharmaceutical industry, the strategic integration of varieties h extension of equity financing for development is about to open in Hong Kong offering will help the company long-term development financing to help the company first started in the extensional development of future open space on the second is to help enhance the company's issued shares h international influence, strengthen international cooperation, Third, it helps companies to establish a more market-oriented the incentive mechanism. out of Shanghai, to build the whole industry chain, driven by the government Pharmaceutical carriers, SIIC successfully completed restructuring of the Pharmaceutical Group, the history of the gradual resolution of the problem, enter the fast track of development.'s new structure is clearly targeted at Shanghai Pharmaceutical, headquartered in Shanghai large national pharmaceutical group, ranked second in overall size.'s future growth prospects in the pharmaceutical distribution business, the company will continue to deepen through the acquisition of east, north and south of the advantages of high-end LAN, through equity, innovation and value-added services and other ways to strengthen the strategic partnership, the existing pattern of Lower Dir area leading to a national distribution from the distribution business; in the pharmaceutical manufacturing business, the company focus on advantages of variety, integrating R & D resources, M & A kind of innovative medicines, will gradually improve manufacturing business profitability; in the pharmaceutical retail sector, companies in the East China region has a strong brand, through the early benefits of internal integration has gradually produced, the next is expected to maintain steady growth. risk warning issued shares of the size of h uncertainty. Shanghai Pharmaceutical has a relatively large pharmaceutical assets, the future will continue to mergers and acquisitions, there is poor management and integration of the risk of earnings forecasts and investment recommendations: China Medicine (600056) industry is expected to integrate the company's 2011-2013 strategic varieties were 1.11 eps / 1.25/1.58 million (of which operating element eps were 0.96/1.25/1.58, respectively, an increase of 54% / 31% / 26%) calculated in accordance with issue size limit (not considered green shoe mechanism), diluted 2011 the company The main industry in 2013 eps were 0.72/0.94/1.18 million, after taking into account the extension of h shares acquisition may speed issue, we give the company 35 times in 2011 pe, the target price of 25.20 yuan (equivalent to 26 times 2012 pe), Maintain BUY The company is the strategic integration of China's pharmaceutical industry, species, suggest that investors focus on long-term, continue to hold firm to share the company completed the integration of Health, into the rapid expansion phase may exceed the expected growth (Ge Zheng Guang Development Securities (000,776) Research and Development Center) North Business (600 967): truck business into the outbreak of the growth period Baotou North Venture Co., Ltd. and Indonesian Railway Company pt.kereta api indonesia (persero) signed a 1200 kkbw type coal gondola car sales contract, the total contract price usd81, 450,000.00, equivalent to about 530 million yuan. performance of the contract period of April 2011 in December 2013. vehicle business for the company to provide continuous, stable cash flow business currently engaged in the north railway trucks, crankshaft and heavy-duty vehicles front axle forgings, military structural parts of the production and R & D, the actual control of a machine group of people in Inner Mongolia in the northwest, the largest equipment manufacturing bases. trucks business is the core of the business venture north, the company have the gondola, boxcar, flat car, tank car, hopper car, almost all model year 6000 the production capacity (three shifts), where c80 series gondola represents the highest level of domestic trucks. inside and outside the vehicle business into homogeneous flowering period of explosive growth in 2010, railway vehicles Total sales of 3500, of which the Ministry of Railways tender vehicles and half of each corporate-owned vehicle sales, market share rose to 7.5%, 13 vehicles designated truck companies in the top five, we determine, with high-speed rail passenger the peak building near the end, enhance freight investment, both passenger and freight will be the trend. A few years ago, purchase trucks each year the Ministry of Railways stable at 4-4.5 million units, according to market share is basically assigned to each truck manufacturer in 2011 Railways total tender trucks may increase to more than 50,000 this year, also increased significantly the number of tender due to advanced technology company, and Shenhua Coal Group and other large a good relationship, the company steadily increased market share in 2010 reached 7.5 % of the company has received one quarter of 1400-1500 vehicles, the year is expected to achieve more than 4000 domestic sales, domestic market share will further increase to 8%. or will lead to the nuclear crisis in Germany and other European markets to increase investment in short-term solar power plant (although hydraulic fracturing has made a breakthrough in mining technology, natural gas prices have fallen); 2) With the European PV subsidy reduction policy uncertainty, in turn stimulate a wave of PV "grab loaded" boom; 3) the price of PV modules The decline is expected to ensure the PV power plant operators a reasonable economic return on investment, attract capital investment and construction of photovoltaic power plant is still in force over the fermentation of multiple favorable factors, the global PV demand growth in 2011 is still expected to reach 30%, annual new installed capacity is expected to reach 23gw; and the United States in the upcoming two photovoltaic power, driven by the future potential is expected to sustain rapid growth (Xiao Shijun States Securities Research Center)>