Investment points: First coverage, “increased holdings” rating, target price of 21.08 yuan. We believe that the company's main business is small, very stable, and highly profitable, and is a very good platform for capital management. At the same time, the majority shareholders hold a high share of listed companies (59.87%) and their subsidiaries have high-quality asset resources, so there is plenty of room for future asset securitization and expansion. We expect EPS for 2016-2018 to be 0.30/0.32/0.34 yuan, respectively. Given the possibility of asset securitization and extension expansion by the company's majority shareholders, it was covered for the first time and given an “increase in holdings” rating. The target price is 21.08 yuan, which is 70 times the PE corresponding to 2016. Large groups and small companies, large shareholders account for a high share of shareholders+high-quality assets in vitro. The majority shareholder of the company is Changshu Jack Factory (Jiangsu Tongrun Electromechanical Group), which directly and indirectly holds 59.87% of the company's shares. In addition, the majority shareholders also own high-quality assets such as Tongrun Drive Equipment Co., Ltd. (with rare earth permanent magnet motor drive technology), a leading elevator traction machine company that failed two IPOs, and Tongrun Auto Parts Company, the world's largest jack manufacturer. The company is expected to develop by leaps and bounds with the high-quality assets of the majority shareholders. The main business is steady and profitable, and fixed growth starts the first step in capital operation. The company's main business tool cabinet is already the industry leader, and growth is weak. However, the company's main business is small and highly profitable, and the shareholding ratio of the majority shareholders is high, making it a very good platform for capital management. The company has not made any moves in the capital market since it went public in 2007. The first acquisition began in 2015, but it was terminated due to land title issues with the underlying enterprise. In early 2016, it immediately started non-public offering to increase its main business. This shows that the company has begun to pay attention to listed companies as the operating platform for the capital market, compounding the high shareholders' share of shareholders' equity plus high-quality external assets. There is a lot of room for future asset securitization and external expansion. Catalysts: Non-public offering approved; asset securitization or extension expectations advanced. Core risk: Asset securitization or epitaxial expansion is blocked; fixed increases drive low expectations.