Incident: On January 17, 2015, the company issued an announcement stating that it plans to establish a joint venture securities company. The securities business is the third type of financial business that Rong Sheng Ultra Micro is involved in after factoring and financial leasing. We believe that with the company's comprehensive transformation of financial control, the profit level will be greatly increased, and it will also have a strong synergistic effect with the main business, and the integration of industry and finance will create the future of the company. It is estimated that the EPS calculated from 2015 to 2017 based on diluted share capital will be 0.04 yuan, 0.08 yuan, and 0.11 yuan, and the target price for 6 months is 30.7 yuan. A fixed increase helps the development of the main business. (1) The company's main business is declining steadily. The company's main business is the production of enameled wire supporting electronic information, household appliances, and national defense technology. In recent years, due to the macroeconomic downturn and weakening market demand, the company's main revenue has basically remained around 1 billion yuan, and the growth momentum is weak. (2) A fixed increase will effectively reduce capital restrictions for business expansion. The company's main business requires a large scale of capital, and the company's working capital is largely dependent on bank loans, and the expansion of business scale is limited by the financial strength of listed companies themselves. A fixed increase can greatly increase a company's capital strength and reduce capital restrictions on business expansion. Fully transform financial control to open up room for growth. (1) Build joint venture brokerage firms and raise profit levels. Financial cooperation is an important part of economic and trade cooperation between Guangdong, Hong Kong and Macao. Benefiting from the continuous improvement of multi-level capital markets and the continuous increase in the proportion of direct financing, the securities industry is facing new opportunities for development. Rongsheng Super Micro plans to establish a joint venture securities company with Hong Kong and Shenzhen Capital to fully participate in the securities industry, and the company's profit level will increase markedly. (2) Get involved in commercial factoring and enrich profit models. The macroeconomic situation is severe, and the scale of accounts receivable continues to rise, providing broad development space for factoring business. The company establishes subsidiaries to develop factoring business, which can not only reduce the company's financing costs, create synergy with the main business, but also enrich the profit model. (3) Participate in financial leasing and enjoy huge market space. The financial leasing industry is at its peak of development. As of September 2015, the number of financial leasing companies nationwide reached 3,742, an increase of 1,540 over the end of 2014. According to estimates by the Financial Leasing Professional Committee of the China Banking Association, the current leasing penetration rate in China is between 4% and 5%, far below the level of 15% to 30% in developed countries. As corporate financing needs increase, the industry has broad prospects for development. Rongsheng Ultra Micro has set up a financial leasing subsidiary, which can enjoy huge market space, broaden revenue sources, and have a better synergy with the main business, expand financing channels, and achieve integration between industry and finance. Investment advice: It is estimated that the EPS calculated from 2015 to 2017 based on diluted share capital will be 0.04 yuan, 0.08 yuan, and 0.11 yuan, and the target price for 6 months is 30.7 yuan. Risk warning: Securities business operating losses and financial leasing business bad debts have increased dramatically