Investment highlights: The 2016 performance was in line with expectations: in 2016, the company recorded operating income of HK$1.63 billion, a slight increase of 1.3% year on year; gross margin for the period was 28.1%, up 2 percentage points year on year; profit attributable to owners was HK$210 million, up 9.7% year on year; profit per share was HK$0.25; proposed final dividend of HK$0.14 per share, with a payout rate as high as 56.3%. Overall, the company's expenses are well controlled, and the net profit is in line with our previous expectations. The mold manufacturing capacity utilization rate is high, and gross margin is expected to increase further: by business, the company's mold manufacturing division's revenue was HK$630 million, up 7.2% year on year; segment gross margin was 28.4%, up 3 percentage points year on year. The injection component manufacturing division's revenue was HK$995 million, a decrease of 2.2% year over year; the division's gross margin was 27.8%, up 1.4 percentage points year over year. Looking ahead, we expect revenue from the mold manufacturing business to continue to increase slightly. As capacity utilization continues to increase, gross margin is expected to reach 30%. In terms of injection molding business, the company successfully obtained orders for new product components from smartphone customers. At the same time, the smart home business also brought a certain increase in performance to the company's injection molding division. It is expected that the division's revenue will grow by more than 10% in 2017, and gross margin will remain stable. The share of the automobile industry has increased, and smart home revenue will increase in the future: according to the downstream industry, revenue from the automobile industry reached 23.8% of the company's revenue, up 5 percentage points year on year; revenue from commercial communication equipment was 23.0%, up 3.6 percentage points year on year; revenue from mobile phones and wearable devices accounted for 18.2%, down 2.5 percentage points year on year; revenue from mobile phones and wearable devices accounted for 5.6%, up 0.7 percentage points year on year. With the rapid development of the smart home industry, the share is expected to continue to increase in the future. Maintain the recommended rating, with a target price of HK$2.8: We predict that the company's 2017-2019 EPS will be HK$0.28, HK$0.31 and HK$0.35 respectively, giving 10 times PE in 2017, which is equivalent to the target price of HK$2.8, which is equivalent to the target price of HK$2.8. There is room for increase of 17.6% from the current price, and maintain the recommended rating.