This issue's “Excellent Promotion” package: Zhongwei Electronics (300270). Zhongwei Electronics (300270) (2016-4-1 closing price of 16.13 yuan) Core recommendation reasons: 1. Highway video surveillance leader. Since its establishment in 2000, Zhongwei Electronics has focused on the research and development of security video surveillance transmission technology. Its main products are security video surveillance platforms and front and back ends. Currently, it is a leading enterprise in the field of highway video transmission, with a market share of more than 30%. 2. Expanding the business to safe cities and intelligent transportation has achieved remarkable results. Judging from the company's different business revenue ratios in recent years, the company's dependence on the highway business has declined, while revenue from the safe city and intelligent transportation sector has continued to increase in the proportion of the company's revenue, indicating that the expansion of the company's main business from highways to safe cities and intelligent transportation has achieved obvious results, and the company's business revenue is expected to continue to grow in the next few years. 3. Take root in highway informatization and enter the mobile Internet field. In 2014, Zhongwei Electronics and Beijing Zhongjiaohui Energy signed a sales contract of 153 million yuan, which is equivalent to 128% of the company's 2013 revenue. At the same time, the company switched from being a video surveillance solution provider to providing Internet services in the field of highways. The company not only established a joint venture with CCCC Huineng, but also signed a 10-year cooperation agreement with Zhejiang Smart Expressway Service Co., Ltd. at the end of 2014. Recently, the company plans to establish an Internet company in a joint venture with Shantao Information to carry out WiFi construction for Shandong Expressway Company. 4. The company's performance report shows that in 2015, the company's sales revenue increased 27.37% year on year, and net profit attributable to ordinary shareholders increased 13.47% year on year, mainly because the company increased market investment and increased sales efforts. Profit forecast and investment rating: Based on the company's performance report data, the company's EPS in 2015 was about 0.17 yuan, lower than expected. We expect the company's EPS in 2016 and 2017 to be 0.29 yuan and 0.36 yuan respectively, and the 2015-2017 PE corresponding to the latest stock price will be 92, 55, and 45 times, respectively, maintaining an “gain” rating. Risk warning: Gross margin declined, and high-speed mobile wireless broadband Internet project tests fell short of expectations. Related Research: “20150605 Zhongwei Electronics: Expanding Business in Advantageous Areas and Entering the Mobile Internet”