Key investment points: Asset restructuring introduces high-quality asset Lianyi Electric, which has first-class technical strength. Lianyi Electric is one of the leading micro motor companies in China. Its main products are micro motors such as AC, permanent magnet DC, brushless, stepper, servo motors, etc., and electric push rod actuators. Downstream applications include audio and video equipment, sports machinery, and automation equipment. The downstream customers that the company has cooperated with for a long time include Matsuoka Electromechanical (China) Co., Ltd. and Kunshan Bodong Wheelchair Parts Co., Ltd. and many other well-known domestic and foreign companies. At present, the company has significantly entered a stage of rapid business growth in business fields such as automated servo motor systems and scooters. Robotic servo motors and control systems are about to be released, and the blue ocean market for special robots will be the first to be deployed. The company has been developing the core technology of robot servo motors and systems since 2012. We compared the servo motor and control system product performance disclosed on the company's website with Huichuan Technology's products and found that Lianyi Motor's servo motors and drive systems have reached first-class standards at home and abroad. Considering that the company's servo motors and systems began providing prototypes to foreign companies in 2014 to conduct long-term performance tests, we expect that 2016 will probably be the first year of the company's servo motors and systems. In addition to the upcoming release of core robot components, the company is also pioneering the deployment of special robot bodies, and the company has signed strategic cooperation agreements with leading domestic robotics research institutes and Israeli robotics companies. Senior experts joined to help the company build the next NEV powertrain supplier. Jin Yiyi, a senior expert of the “Thousand Talents Program”, is the chief engineer of Lianyi Electric. His research and design fields cover almost all core technologies in the field of electric vehicles. The development goal of Lianyi Electric's new energy vehicle assembly system in the future is to achieve intelligent vehicle control integrating a motor, controller, and gearbox. Recently, Lianyi Electric has successfully developed an automatic transmission for medium power electric vehicles, which has been submitted to a third party authority for testing. Once successfully tested, Lianyi Electric will become the first domestic enterprise with independent intellectual property rights for fully automatic transmissions for new energy vehicles. According to estimates, in 2016-2020, the domestic NEV powertrain market space will reach 165 billion yuan, and the company is expected to share the feast of rapid NEV growth in China in the future. Healthcare and eco-friendly leisure products are constantly being created, and scooters for the elderly are growing rapidly. The company has a comprehensive layout of medical care, environmental protection and leisure products. The company gives full play to its advantages in the field of micromotors. Currently, it has become the only supplier of the world's highest-end electric wheelchair drive components in China, and has obtained US FDA certification. Old scooter products have become the company's first selling products in recent years. In 2015, we expect the company to sell nearly 1,000 units a month, mainly exported to Europe and America. The retail unit price is 4,000-7,000 yuan/vehicle, and the gross margin is higher than 40%. The target price is 25 yuan, and there is room for an increase of more than 50% in 6 months. It was covered for the first time, giving it a “buy” rating. Based on a neutral assumption, we expect that in 2016-2018, Taiyuan Corundum will be able to achieve net profits of 137 million yuan, 225 million yuan and 400 million yuan, respectively, and the corresponding earnings per share after full dilution are 0.24, 0.40 and 0.71 yuan. Referring to the average valuation of PE 50X in 2017, taking into account the synergy and high growth of the company's hot spot layout, we gave the company a target price of 25 yuan for 6 months, corresponding to PE62.5X in 2017, for the first time covered and given a “buy” rating. Furthermore, considering that the company's intelligent logistics project will enter production in 2016, which may further increase the company's profits, there is still a possibility that future profit forecasts will increase.