Main points of investment:

1. The main business of the company is progressing smoothly. The company's main business is mainly controlled by three holding subsidiaries, of which Daheng Group mainly distributes electronic products such as computers and office automation equipment, and its gross profit margin is expected to increase steadily in the future. China Science and Technology Ocean is the leader in the field of domestic digital TV editing and broadcasting system, and its business will achieve rapid and steady growth in the future. Ningbo Mingxin is mainly engaged in the closed testing of power semiconductor separation devices, with the completion of the comprehensive cooperation with the Japanese listed company NIEC in 2010, and the strong demand for power devices in China's energy-saving industry, its future profitability will be a qualitative leap.

2. Other investments of the company are also expected to enter the harvest period. In terms of equity investment in the Nuoan Fund, although the equity investment in the Nuoan Fund has brought rich cash returns to the company in the past two years, because the investment has not been approved by the Securities Regulatory Commission, the income from the investment can not be reasonably reflected in the company's profit statement, and as the termination date of the equity investment is approaching, the investment is expected to be approved by the Securities Regulatory Commission in 2011. So as to increase the company's paper profit. Semiconductor closed testing company Ningbo Hualong equity investment, the company has been relatively strong profits, has been equipped with listing conditions, I believe that once the future listing success, will bring a better return on investment for the company.

3. Valuation and risk hints. In the next 2 years, the business of the company will gradually turn smoothly, and the profit will be significantly improved. It is expected that the company's earnings per share for 10, 11 and 12 years will be 0.31,0.48 and 0.60 yuan respectively. In view of the current valuation of the electronic sector in which the company is located, we think that it is reasonable to give the company a 30-fold PE in 2011, corresponding to a target price of 15 yuan per share, which is given a "cautious recommendation" investment rating for the first time. The main risks of the company are that the profits of various businesses brought about by the economic downturn fall short of expectations, and the return on investment of the company's financial equity falls short of expectations.