Key investment points Asset restructuring has broken the cocoon into a butterfly. The company's original main business was NdFeB permanent magnet materials, automated logistics three-dimensional warehouses, and micro motors and speed reducers. Through a series of acquisitions and restructuring, the company emphasizes business collaboration. Through resource allocation, it has formed a product line of rare earth magnetic materials, motor electronic control, and intelligent logistics equipment. The company will focus on building a “control technology+motor” precision manufacturing industry platform, build a “components+equipment+engineering” industrial ecosystem through system integration, and vigorously develop business fields such as driving systems for new energy vehicles, electric wheelchairs for medical rehabilitation, fire robots, fire simulation training systems, and smart factory systems. Strengthen magnetic materials to serve high-end equipment. Through the acquisition of Ganzhou Tongcheng, the injection of Ganzhou Dongcheng and Yingluohua Import and Export, plus the original Yingluohua Magnetic Industry, the company will have a total NdFeB production capacity of 7,300 tons, become the second-largest domestic magnetic materials company, achieve complementarity in production capacity, technology, and market, enhance overall competitiveness, and provide strong support for the company's downstream business expansion. Part of the magnetic materials produced by the company will directly serve the company's new energy vehicle motors, various automation equipment and intelligent engineering components. Integrated control technology and motors extend to equipment. The company has been engaged in research, development, production and sales of micro motor and speed reducer products, with an annual production capacity of more than 4 million units. The products produced are at the absolute leading level in the industry at home and abroad. The main products include AC motors, DC motors, synchronous motors, brushless motors, electric pushers, stepper motors, six types of motors and motor components. After completion, the micro motor industrialization project will form a production capacity of 840,000 high-efficiency and energy-saving micro motors and 40,000 scooters per year, entering the field of medical rehabilitation; the NEV drive system research and industrialization project can generate a production capacity of 40,000 units per year. Relying on the industrial accumulation of intelligent logistics equipment, we are vigorously developing engineering fields such as smart factory systems. The company is one of the largest logistics equipment and technology integrators in China. It ranks among the top in terms of market share and industry coverage, and is unique in the research and manufacture of special storage types such as explosion-proof warehouses, low temperature refrigerated warehouses, and dark storage. It is committed to building automated three-dimensional warehouse systems and manufacturing more advanced logistics equipment. Based on this, the company is committed to developing a smart factory system based on automatic transportation of logistics within the factory. Fire robots and fire training simulation projects have great potential. With policy support for fire robots and fire training simulation engineering, there is huge room for development. Using winning the bid for the procurement project for the fireworks simulation facility at the Zhejiang Fire Brigade Training Base, the company will vigorously develop fire robots and fire training simulation projects based on the experience and advantages of intelligent fire control equipment, combined with the ability to simulate scenes of fire protection systems, to meet the needs of future intelligent fire robot joint fire extinguishing exercises. Maintain a “buy” investment rating. Based on the progress of the company's project commissioning, we expect the company's 2015-2017 EPS to be -0.19 yuan, 0.34 yuan, and 0.50 yuan respectively. Our target price is 16.92 yuan, which corresponds to 50 times PE in 2016, maintaining a “buy” investment rating. Uncertainty. Price fluctuation risk; policy risk; exchange rate risk; fund-raising project delivery risk.