Investment highlights: Industry-leading integrated solutions provider. The company is mainly engaged in lighting engineering business and related lighting engineering design, lighting product development, production, sales and contract energy management business. It has undertaken a number of lighting projects with industry demonstration effects. From January to September 2015, the company achieved main revenue of 170 million yuan, of which lighting engineering business, lighting engineering design, contract energy management and lighting product sales accounted for 88.47%, 1.85%, 0.35% and 9.33% respectively, with gross margins of 49.90%, 69.82%, 63.15% and 30.27%, respectively. Chairman Cheng Zongyu is the actual controller. Based on the issuance of 30 million shares, after issuance, Cheng Zongyu, chairman of the company, held 60.75 million shares of the company, with a shareholding ratio of 50.63%, and was the actual controller of the company; general manager Zhang Jingshi held 6.75 million shares, accounting for 5.63%; board secretary Liu Donghua held 1.5 million shares, accounting for 1.25%; business manager Zou Xiaojun and core technician Dai Lei held 3 million and 1.622,000 shares respectively, accounting for 2.5% and 1.35%, respectively. Net profit has maintained a slight increase, and steady growth is expected to improve performance. The company's operating income in 2013-2015 was 2.06, 235 and 248 million yuan respectively, with year-on-year increases of 21.80%, 13.84% and 5.41% respectively, and the growth rate has slowed; imputed net profit was 4,600, 4766 and 49.71 million yuan, respectively, up 8.37%, 3.61% and 4.30% year on year, maintaining slight positive growth. The main reason why the performance growth rate was less than revenue was the increase in the company's financial expenses rate and management expense ratio. The downstream of the company is mainly the government, real estate, etc., and the downward pressure on the economy is forcing steady growth to increase, and the removal of real estate inventory to speed up real estate sales. Through upstream and downstream linkage, the company is expected to benefit significantly. The size of accounts receivable plus inventory has increased year by year, and operating cash flow continues to have a net outflow. The company's total accounts for 2012-2015 Q1-3 (accounts receivable plus inventory) were 1.13, 1.75, 3.16 and 374 million yuan respectively, accounting for 52.88%, 55.61%, 70.32% and 67.19% of total assets, respectively. The share gradually increased because of the rapid growth in the company's lighting engineering business in recent years and the slow repayment, and the company's net operating cash flow was -4836, -2740, -4130, and -27.68 million yuan, respectively, with a continuous net outflow. Competition in the industry is fierce, and listing enhances overall competitiveness. By the end of 2015, there were more than 200 enterprises in the industry with “Urban and Road Lighting Specialty Package Level 1” and 36 “Lighting Engineering Design Special Class A” enterprises. The overall concentration of the industry was low and competition was intense. The company is one of the few 27 enterprises with these two qualifications at the same time. It has an industry-leading “design-production-construction” industry chain and integrated comprehensive service capabilities. Through listing, it solves the capital bottlenecks faced by enterprise development, expands brand awareness, and further strengthens its comprehensive competitive strength. Raise capital to supplement working capital and improve the industrial chain. The company plans to issue no more than 30 million new shares to raise capital for the lighting construction project, the Lu'an Mingjiahui Optoelectronics Industrial Park construction project, and the R&D and design center upgrade project. Raising capital funds will ease the financial pressure faced by the company in expanding its business, enhance its ability to undertake projects, further improve the company's industrial chain, and enhance its integrated comprehensive service capabilities. The reasonable value range is 11.64 yuan to 13.96 yuan. Based on the maximum share capital after issuance, it is estimated that the EPS for 16-17 will be 0.47 yuan and 0.52 yuan respectively, and according to the rules for issuing new shares, the company's issuance price will be 8.58 yuan ((financing amount+issuance fee) /issuance volume), which is about 20.7 times that of the 15-year PE. Currently, there are no similar listed companies in the sector. Referring to garden companies whose main business is engineering construction, we gave the company a dynamic price-earnings ratio of 25-30 times in 16 years, corresponding to a reasonable price of 11.64-13.96 yuan. The company is the first listed company in the lighting engineering industry. The expansion of financing channels has solved the capital bottlenecks that restrict business development, favors the company's long-term development, and suggests a subscription. Risk warning. Economic downturn risk, repayment risk.