A unique opinion on the company's post-restructuring to touch and its upstream transformation, the intensification of touch competition and the decline in traditional and LCM business has become a major concern in the market. We believe that the company's transformation at this time is in line with industry trends, and that the “one-stop touch panel” strategic layout will strengthen the total solution solution for customers, with obvious competitive advantages; while the parent company China Video Control will bring many benefits such as integrated cost advantages, downstream customer sharing, and technology research and development support to the transformation, while at the same time bringing a stable supporting role to the company's LCM business with the advantage of being number one in small to medium size shipments in the world. Furthermore, the research and development of touch materials is progressing smoothly, which will open up more room for growth for the company. Investment Essentials 1. The restructuring has promoted the transformation of the company's business, and its performance has remained stable in recent years. Since this year, the company has successively announced the progress of business adjustments and restructuring, such as “investing in touch materials” and “transferring 20% of Huaying Optoelectronics's shares.” After the restructuring, the company's LCM module gradually transformed into a display device industry giant with touch products as the highlight and materials and modules on the basis of its original business. According to the shareholders' promises of the company's restructuring, the company's performance growth will remain stable in recent years. 2. Build a “one-stop touch panel” to enhance the competitive advantage of the display industry. The touch industry is on the rise. Through Huaying Optoelectronics's equity injection, the company will create a “one-stop touch panel” strategic layout with multiple links such as cover glass, touch sensors, TP modules, and display modules to form a strong comprehensive competitive advantage: (1) Cost advantage: In the context of falling touch prices and pressure on gross margin next year, product cost advantages have increased markedly; (2) Customer advantages: The parent company has a broad perspective, high resolution, 3D, and 3D The advantages of panels such as OLED will drive the company The touch control business has entered the terminal industry chain of important brands such as Samsung and Amazon; (3) Technological process advantages: The parent company, Huaying, has many years of display device production experience and technology, which helps Huaying Optoelectronics master processes such as yellow light etching, ITO coating, glass processing technology, and OGS process development such as TOL and ON-cell in the touch process. 3. Taiwan's Huaying LCD business promotes the steady development of LCM's incoming material processing business. The LCM business is a labor-intensive and competitive business in the display industry chain. Since the company's LCM business has been mainly material processing, there have been relatively few domestic incoming material processing businesses. Since the parent company, Taiwan Huaying, is the leader in the global small to medium size TFT-LCD industry, it has ranked first in the world in terms of shipment volume for many years, providing a stable source of orders for the company's LCM business. At the same time, the company leverages the abundant labor resources of the mainland to effectively reduce LCM costs, which also helps to further open up the vast market demand in the mainland. 4. Investment suggestions and ratings: Huaying Optoelectronics's equity has been injected one after another and production capacity continues to expand. The company's performance growth rate will accelerate next year, and the “one-stop touch panel” strategic layout will enhance the competitiveness of the company's Total Solution. We gave the company a “recommended” rating. The 2011-2013 EPS was 0.49, 0.85, and 1.10, respectively, and the PE corresponding to the current stock price is 48, 28, and 22 times, respectively. Risk Tip 1. The progress of Huaying Optoelectronics's equity acquisition fell short of expectations; 2. Competition in the industry is fierce, and customer orders fall short of expectations; 3. The progress of the one-stop layout of touch panels did not meet expectations, and the expansion of production capacity fell short of expectations.