Sapphire: The most ideal optical material as an optical material and transmission material. In addition to its characteristics such as high strength, high hardness, and resistance to washing, sapphire also has excellent color, fidelity, and light transmission. The stranding of cooperation between Apple and GTAT reveals that the current process of industrialization of heat exchange methods is still unstable. LED: The growth rate is stable, and the substrate is developing to large sizes LED is currently the most important application direction for sapphire materials, and large sapphire crystals are one of the development directions of the industry. At present, major international manufacturers have basically completed the conversion of 4-inch substrates, and it is expected that they will expand to 6-inch substrates in the future. The expansion of substrate size is conducive to reducing the edge effect of epitaxial films and improving the yield of LEDs. Consumer electronics: The actual number of orders for smart watches and non-Apple brand window application Ored's 2-inch crystal blocks in 2015 was 30 million mm, which is equivalent to 1/3 of the global LED substrate market usage in 2014 for one iWatch product alone. If Apple doesn't give up on the sapphire cover, then currently all of the world's sapphire production capacity cannot meet the needs of one of its products. Ored: Deeply cultivated and meticulous, industry benchmark Ored is the world's leading sapphire crystal company. It has mature technology, low cost, high output efficiency, and a stable position in the industry. The steady growth rate of the LED lighting industry, the trend of non-Apple brands using sapphire windows, and domestic brands taking the lead in experimenting with sapphire screens on their high-end models will all guarantee the company's development. Earnings Forecast and Valuation We expect the company's 2015-2017 EPS to be 0.40, 0.64, and 1.75. According to the average PE of comparable companies, since the company is an industry leader, technology leader, and stable position, it is given a 40% premium, that is, compared to the 2015 performance PE of 124X, the corresponding target price is 49.6 yuan, and the corresponding target price is 49.6 yuan. For the first time, it was given a “buy” rating. The corresponding 2016-2017 PE was 78X and 28X, respectively.