Investment points: The asset securitization rate has huge potential. As a listed platform company under the Second Academy of Aerospace Science and Industry, the company has an outstanding strategic position. Also, during the stock crisis last year, the Aerospace Science and Industry Group directly purchased 780,000 shares of the company from the secondary market, accounting for 0.23% of the company's total share capital, highlighting the company's strategic position in the Aerospace Science and Industry Group. In 2015, the operating income of the Second Academy of Aerospace Science and Technology exceeded 30 billion yuan for the first time, and net profit reached about 2.9 billion yuan. However, the asset securitization rate of the Second Academy of Aerospace Science and Industry is only about 5%. Not only is it far below the asset securitization rate of the Aerospace Science and Industry Group, but there is also a big gap with the country's strategic goals. Therefore, the future asset securitization potential of the Second Academy of Aerospace Science and Industry is huge. The three main industries have been further clarified and have entered a state of steady growth. After years of development, the company has formed a pattern of three major business segments: security technology, medical devices, and electronic information, and each has formed unique advantages in their respective fields and has strong market competitiveness. During the “13th Five-Year Plan” period, the company will focus on three sectors, gradually optimize the industrial structure and regional division of labor in accordance with technical characteristics and advantages, build an industrial chain and product chain, and achieve regional market segmentation and intensive cultivation. We expect that the company's traditional main business will develop rapidly during the “13th Five-Year Plan” period after undergoing previous adjustments. Profit forecasts and investment advice. On the one hand, in the context of the country's vigorous promotion of military asset securitization, the Second Academy of Aerospace Science and Industry has the greatest potential for asset securitization, and the company has a remarkable strategic position as a platform company listed by the Second Academy; on the other hand, after going through adjustments and reorganization of the main business in the previous two years, the company has further clarified the three main industries of security technology, medical devices, and electronic information. At the same time, the company is also actively bringing in outstanding talents from outside and striving to achieve rapid growth in its main business. Therefore, we are optimistic about the company's future development for a long time and maintain the company's “increased holdings” rating. It is expected that the company will achieve EPS: 0.13 yuan/share, 0.16 yuan/share, and 0.19 yuan/share in 2016-18, respectively.