Professional backup lighting manufacturer: The company specializes in two types of products: rechargeable backup lighting and rechargeable AC/DC fans; LED lamp sales account for more than 60% of the total sales volume of lamps. The products are widely used in various fields such as civilian backup lighting, industrial backup lighting, outdoor sports, outdoor living, military long-distance lighting, etc.; the products are mainly used for export, with an export ratio of about 85%, and sold to more than 70 countries and regions. The rechargeable lighting export industry is growing rapidly and competition is full: In recent years, domestic exports of rechargeable lighting products have maintained a high growth rate. Between 2010 and 2012, the compound growth rate of China's backup lighting and flashlight exports reached 17.1% and 12% respectively. Industry concentration is low, competition is sufficient, and the overall market share of the top ten export companies is less than 20%. The competitive advantages are obvious: 1) leading technology and strong R&D capabilities. The company has 211 patents and 50 new products to the market every year; 2) pricing is autonomous and uses cost plus legal pricing to ensure gross profit margin; 3) the overseas marketing network is sound and does not rely on a single market or customer; 4) accounts receivable, inventory, and total asset turnover are above the industry average. Fund-raising projects break through production capacity bottlenecks and strengthen R&D capabilities: The three fund-raising projects are the “Rechargeable Backup LED Lamp Production Expansion Project”, the “Rechargeable AC/DC Fan Expansion Project”, and the “R&D Center Project”. When the fund-raising project reaches production, the company's production capacity will double, breaking through the bottleneck in production capacity; research and development capabilities will be strengthened; new products that meet market demand will be launched at an accelerated pace. It is expected that 100 new products will be added every year; at the same time, the performance of key components such as light sources and batteries will also be greatly improved. Investment recommendations: Revenue growth rates for 2013-2015 are expected to be 0.52%, 17.3% and 17.07%, net profit growth rates of -30.2%, 38.5%, and 28.2%, and EPS of 0.46, 0.64, and 0.82 yuan respectively. Considering the valuation level of similar companies in the market and the scale of capital raised this time, we think it is more reasonable to give 19-23 times PE, and the inquiry range is 12.20-15.23 yuan. Risk warning: 1) Exchange losses due to the appreciation of the RMB; 2) The company's products currently implement an export tax rebate rate of 13-18%. A decrease in the export tax rebate rate will lower the gross profit margin; 3) there may be risks in absorbing new production capacity.