2010 result is slightly below expectation. In 2010, the company posted operating income ofRMB250 million, up 50.45% YoY and net profit of RMB85.71 million, up 57.63% YoY. Thereason for lower-than-expected performance is mainly due to late bidding for high-speedrailway accident prevention project. Revenue growth principally stemmed from traditional businesses such as centralized signalmonitoring and wireless dispatching etc. However, the delayed bidding for accidentprevention projects is the major reason for lower-than-expected result. The companyachieved revenue of RMB163 million from centralized signal monitoring system in 2010, up26.8% YoY, accounting for 65% of its overall revenues. Wireless dispatching businessposted revenue of RMB28.81 million, up 97.7% comparing with that of last year. Regardingthe area of accident prevention & safety monitoring, as bidding for major railway lines suchas Beijing-Shanghai, Arbin-Dalian, Beijing-Shijiazhuang-Wuhan starts in 2011, but thecompany only completed two lines in 2010 and reported revenue of RMB34.14 million. Having benefited from product upgrade, centralized railway signal monitoring system willstill see high revenue growth in coming few years. The centralized monitoring system hasupgraded to be core monitoring system. New high-speed railway under construction andexisting railway lines upgrade must use 2010 version of the product. However, Version2006 for traditional railway and mining railway still has huge market potentials. Accident prevention visual monitoring system gradually steps into a harvest period and isexpected to achieve big growth in 2011, 2012. A collective bidding for more than tenhigh-speed railway lines accident prevention system will be conducted this year. Theyinclude lines from Beijing-Shanghai, Harbin-Dalian, Beijing-Shijiazhuang-Wuhan. In ouropinion, its accident prevention business has already passed incubation period. Receivingorders constantly is a big-probability event. In 2011, accident prevent business will achievesignificant breakthrough. Similar to accident prevention business, the company adopts apenetration approach and planned strategy aiming at rail transport and comprehensivevideo monitoring system. The company is expected to get some orders this year but willachieve great development next year. Due to adequate orders in hands, its sustained development deserves expectation. In2010, its centralized signal monitoring system achieved a growth of 50.9% in orders whilewireless dispatching growth even exceeded 300%. The orders signed (to be implemented)amounted to more than RMB100 million. We predict with the progress of railwayconstruction the company will see an accelerated growth in orders in 2011. Expenses are well controlled. The effect of scale economy gradually emerges. Thecompany period expense rate apparently dropped. Administrative cost and cost of saledeclined from 13.8% and 6.1% of the same period of 2009 to 12.4% and 5.5% in 2010Maintain Outperform rating. The company benefits from broad market prospects forcentralized signal monitoring system upgrade. Accident prevention monitoring system haspassed incubation period. The development of comprehensive video monitoring andinter-city railway deserves expectation. In consideration of possible uncertainty in theprogress of railway construction and from a prudent perspective, we slightly downgrade itsearnings forecast. We predict its EPS from 2011-2012 is RMB1.44 and RMB2.09/share. We are still optimistic about information technology development of high-speed railway andhigh sustainable growth of the company in coming few years. We maintain Outperformrating.