It successfully achieved the first industrial strategic transformation after listing. Phoenix Optics is an optical enterprise with a history of development for more than 40 years. The company's main products are cameras, optical lenses, etc. Since 2003, with “Big Optics” as its development strategy, the company has successfully achieved its first industrial strategic transformation. It has moved from the field of traditional cameras to the field of optical lens processing, forming a production capacity of 11 million pieces/month, ranking fifth in the world. A second strategic transformation of the industry is being implemented, and old brands are revitalizing their youth. The company is currently actively carrying out a second industrial strategic transformation, forming an industrial development pattern combining the three industries of optical components, optical lenses, and optical lens processing, increasing the added value of the company's products and penetrating the high-end of the optical components industry chain. In fact, we believe that the meaning of the current Phoenix Optics industry is completely different from that of the previous Phoenix Optics industry, and that old brands have regained their youth in market competition. Industry growth drives the company's performance, and optical lenses will become a new driving force for the company's performance. The impetus for this round of industry growth stems from strong growth in downstream consumer electronics represented by video cameras, digital cameras, etc. We expect that in the next few years, the growth of consumer electronics will remain relatively strong. Demand growth driven by camera phones will be particularly prominent, and demand growth for optical components will remain relatively high. Share the major trends in industrial transformation. Like other manufacturing industries, the transfer of production capacity to China is also a trend in the field of optical components. In 2005, the company's 5,449 people achieved sales revenue of 534.7 million yuan, with a per capita income of less than 100,000 yuan, which is a typical human resource-intensive industry. We believe that there is no doubt that the company can enjoy a low cost advantage in this kind of industrial transfer. This cost advantage will enable the company to share more of the growth of the industry. The investment rating given to the purchase. The target price is 8.00 yuan, corresponding to 20 times PE in 2007. The company's revenue is expected to increase by 55% in 2006, net profit by 102%, revenue growth by 31%, and net profit by 60% in 2007. Earnings per share for 2006 and 2007 were $0.25 and $0.40 respectively.