The traditional lighting and light application business is developing steadily, entering new fields such as drones and new energy sources. (1) The company's traditional main business is lighting and light application products. Sales of fluorescent lamp indoor lighting products are gradually declining, while sales of LED products are growing rapidly, and the overall traditional lighting and light application business has maintained steady development. (2) In March 2015, the company completed the acquisition of Fushun Optoelectronics. Fushun Optoelectronics's business is involved in LED outdoor lighting, charging piles for new energy vehicles, and intelligent packaging equipment. In May 2015, the company increased its capital and holdings of Manta Intelligence to lay out the drone industry; the company laid out emerging industries such as drones and new energy through mergers and acquisitions. Fushun Optoelectronics's LED business maintained a relatively rapid development and entered the charging pile market. Fushun Optoelectronics's main products include LED lighting products, LED display systems, and counter service products, which are mainly aimed at users in municipal engineering, financial telecommunications, road tunnels, advertising media, stadiums and other industries. (1) Fushun Optoelectronics achieved operating revenue of 390 million yuan and net profit of 63.66 million yuan in 2015; benefiting from factors such as the rapid development of the LED industry, the company's performance growth rate is expected to be more than 20% in 2016. (2) The company has successfully developed products such as charging piles to lay out the field of new energy vehicles. In August 2016, Fushun Optoelectronics and Nanjing Rongyue Electronic Technology Co., Ltd. signed a “Purchase and Sale Contract” for charging piles, with a contract amount of 105 million yuan. The Manta S6 was successfully released, and the prospects for the development of the drone business are worth looking forward to. (1) Manta Intelligence is positioned in the consumer drone market; the Manta S6 small drone was officially released in August 2016, and mass sales are expected in 2017. Small drones are easier to carry and travel, and will become an important development direction for the consumer drone market; the S6 is positioned in the small drone market and has a strong competitive advantage, and future development prospects are worth looking forward to. (2) According to market research agency IDC, global consumer drone shipments will increase from 390,000 units in 2016 to more than 3 million units in 2019, and consumer-grade drones are in a period of rapid development. Profit forecast and investment advice: The estimated operating income from 2016 to 2018 is 955 million yuan, 1,185 million yuan, and 1,501 million yuan, respectively; net profit is 84 million yuan, 121 million yuan, and 186 million yuan, corresponding growth rates are 47.9%, 44.1%, and 53.9%; EPS is 0.23 yuan, 0.33 yuan, and 0.51 yuan, respectively, with corresponding price-earnings ratios of 68.7, 47.7, and 31.0 times. The company has transformed from traditional lighting business to new fields such as drones and new energy sources, and the LED business has maintained a relatively rapid development. The development prospects of new products such as drones and charging piles are worth looking forward to, and for the first time, coverage was given a “recommended” rating. Risk warning: The growth rate of traditional lighting and light application businesses has declined, and the development of new businesses such as drones has fallen short of expectations.