1. Overview of the incident. Recently, Lianjian Optoelectronics issued an announcement: It plans to use centralized bidding transactions, bulk transactions, etc. to repurchase the company's shares for the purpose of cancellation to reduce the company's registered capital, share reward plans, employee stock ownership plans or equity incentive plans. The price of the repurchase shares shall not exceed 25 yuan/share, and the total repurchase capital shall not exceed 240 million yuan. The source of capital is the company's own capital, and the repurchase period is expected to repurchase about 9.6 million shares within 12 months from the day the shareholders' meeting passes this repurchase plan, accounting for 1.56% of the company's current total share capital. 2. Analysis and judgment that the company's investment value is clearly underestimated. The repurchase of shares shows that the company is confident in future development 1. According to the performance forecast, the company expects the net profit attributable to shareholders of listed companies to change in the range of 370 million yuan to 430 million yuan in 2016, an increase of 65.42% to 92.25% over the previous year. The net profit attributable to shareholders of listed companies achieved by the company in 2014, 2015, and January-September 2016 was 13,39735 million yuan, 22,3672 million yuan, and 25,8726 million yuan, respectively, an increase of more than 60% over the previous year. Based on current business conditions, the company expects the company's performance to maintain a good growth trend in 2017. 2. We believe that the company is a leading digital communication group in China, and that the three major businesses are developing well and have significant synergies. The repurchase of the company's shares shows that the company's investment value is underestimated by the market, which will help protect shareholders' interests, increase investor confidence, and enhance the company's image in the capital market. It is proposed to launch an employee stock ownership plan or equity incentive plan to enhance the company's long-term development momentum. The company has gathered a number of excellent subsidiaries with long-term growth potential through acquisitions, and the repurchase of shares is intended to be used to motivate the company's core business backbone, technicians, executives, etc. Employee stock ownership plans or equity incentive plans will stimulate employees' enthusiasm and determination to work hard, and enhance the company's long-term development momentum. We believe that the company still has the potential for rapid growth, and we are firmly optimistic about the company's future development prospects. 3. Profit forecasting and investment recommendations take into account the company's equity incentives for management in 2016. On May 17, 2016, the equity incentive exercise price was 24.40 yuan/share. The current stock price is highly secure. Considering the impact of the acquisition of Artixium, it is estimated that the company's 2016-2018 EPS exam preparation will be 0.66 yuan, 0.96 yuan, and 1.11 yuan. It will give a “highly recommended” rating, which can be given a valuation of 30 to 35 times that of 2017, and a reasonable valuation of 28.8 yuan to 33.6 yuan for the next 6 months. 4. Risk warning: 1. The performance of the acquired company fell short of expectations; 2. The business integration of subsidiaries fell short of expectations; 3. Competition in the industry intensified.