Incident: We recently organized a joint survey on the company. The views are as follows: Comment: 1. As the only authorized distributor of technical ICs with A-shares, the company has played a leading role in the semiconductor IC industry chain. The company is an authorized distributor of world-famous chip design giants such as Qualcomm, NXP, etc., and has a large number of corporate customers in the network communications, smart phones, industrial control, and consumer electronics industries in particular: such as Midea Electric, ZTE, LeTV TV, Kyongjin Electronics, TCL, and DJI DJI DJI. The company focuses on wireless connectivity chips and sensor chips, which are widely used in mobile payments, financial security, smart homes, smart cars, VR virtual reality and other fields. 2. The company is deeply involved in the Chinese market, understands the development trend of the IC industry, and anticipates future epitaxial mergers and acquisitions and large-scale expansion of the upstream and downstream industrial chain. 3. In the context of the country establishing a semiconductor industry fund to vigorously promote the development of the IC industry in mainland China, the company is expected to take advantage of the capital market and encounter opportunities for rapid development. 4. The company's dominant business is wireless connectivity chips and sensor chip business, which are the two basic technologies that make up the development of the Internet of Things, and have a very good product and market positioning. Investment advice: We expect the company's main business revenue of 1,445, 19.34 and 2,576 billion yuan in 2016-2018, up 16.39%, 33.85% and 33.19%, respectively, to achieve net profit attributable to the parent company of 5900, 7800, and 103 million yuan, respectively, with a year-on-year increase of 43.34%, 32.48% and 31.39%, EPS of 0.49, 0.65 and 0.86, respectively, with a target price of 70 yuan, a market value of 8.4 billion yuan, and a “buy” rating. Risk warning: the risk of the Internet of things falling short of expectations, risk of customer loss, systemic risk.