Basic conclusion Photovoltaic lighting promoters have the advantage of sales channels in North America: the company was one of the first companies to start large-scale promotion of photovoltaic lighting products. The global market share has remained around 10% in recent years, along with rapid market growth; the company has been deeply involved in North America for many years and has established long-term cooperative relationships with large retail chains such as The Home Depot, Lowe's, and Target. We believe that the technical barriers in the industry are not high, and the channel advantage is the company's core competitiveness. Products are upgraded to high power to enrich the product line; expand European and domestic sales areas: The company's product line will be extended from the original low-power lawn lamp and garden lamp products to medium to high power, and will enter the fields of LED general lighting, LED street lights, and solar street lights in the future; from the perspective of the sales area, the company will expand from a single North American market to Europe and China. Furthermore, the company is expected to share existing North American sales channels to open up the North American medium and high power market through branding. Photovoltaic lighting is currently dominated by low power, and the market continues to grow at a high rate: since no power grid or wires are required, solar lawn lights and garden lights have the advantages of safety, energy efficiency, and low installation and maintenance costs compared to traditional light sources. In recent years, demand in the European and American markets is strong; the China Lighting Association expects the global photovoltaic lighting market to maintain a market growth rate of about 50% in the next few years. The LED lighting market starts and welcomes a golden decade: LED will completely replace traditional light sources in the next ten years. According to the International Lighting Association, the market size of LED bulbs will reach 14 billion euros by around 2018, and the LED lighting market is expected to enter a period of rapid growth after 2014, and the market size is expected to exceed 50 billion euros by 2020. Value Assessment and Investment Suggestions We forecast the company's net profit for 2012-2014 to be 85 million, 94 million and 117 million, respectively, equivalent to diluted EPS of 0.61,0.67 and 0.83, with a compound growth rate of 27%. Considering the company's channel advantages in North America, we believe that the company should enjoy a certain valuation premium. We gave the company a valuation of 20 times that of 2012, with a corresponding reasonable value of 12.2 yuan.