Company profile: The company is one of the main suppliers of television exterior structural parts in China. In 2009, the company produced 6.54 million sets of television exterior structures, accounting for 17.21% of the market supply of television exterior components (outsourced by complete machine manufacturers), ranking first in the industry. In 2009, the company's CRT and LCD TV exterior components accounted for 11.34% and 73.62% of revenue, respectively. Industry background: In recent years, large-scale production of flat screen TVs has led to a rapid decline in costs and unit prices. Along with consumption upgrades, the pace of replacement of flat screen TVs with CRT TVs has accelerated. In 2009, LCD TV sales reached 63.941 million units, up 58.61% year on year, CRT TV sales volume was 23.723 million units, down 48.06% year on year, and China's color TV industry has once again entered a golden period of development. Although television exterior parts are still mainly produced in-house by machine manufacturers, the proportion of exterior structural components purchased from suppliers continues to increase. In 2003, the market share of exterior structural component suppliers was about 20%, and in 2008 it had already risen to about 36%, and the share will increase further in the future. Competitive advantages: 1) The company has 294 designers and technicians of various types, including 18 industrial designers, 5 designers with senior designer titles in Guangdong Province, and 148 structural designers. First-class industrial designers provide a solid foundation for the company's development 2) Distinguished from the business model of simple design or simple processing, the company integrates design-production-sales-service (DMS) to effectively meet the needs of customers and provide systematic solutions for the appearance structure 3) The DMS business model is highly replicable. The company has designed the color TV exterior structure. The model extends to fields such as automotive, white electricity, and IT. Fund-raising projects: (1) The television exterior structural parts project includes the Hefei Haiyi Phase II construction project with an annual output of 2 million sets of high-end television structural parts and the Jiangsu Yichang construction project with an annual output of 3 million sets of high-end television structural parts. After completion, the project will effectively solve the company's shortage of production capacity and further enhance competitive strength (2) The high-speed precision mold factory construction project will be able to shorten the development cycle of TV molds while meeting the quality requirements for high-end molds. Investment suggestions: The company's diluted earnings per share in 2010 and 2011 are expected to be 0.47 yuan and 0.59 yuan respectively. The dynamic price-earnings ratio given to the company in 2010 is between 28 times and 32 times, and a reasonable valuation is 13.16 yuan to 15.04 yuan.