The company's 2016 annual performance expectations are rising, and profits from the main business are rising steadily: According to the 2016 annual report released by the company, it achieved operating income of about 987 million yuan, an increase of 23.41% over the previous year, net profit attributable to shareholders of listed companies of 119 million yuan, an increase of 24.59% over the previous year, and basic earnings per share of 0.29 yuan, an increase of 23.83% over the same period last year. The company's revenue and net profit throughout the year were in line with expectations and achieved steady growth. The main business fan achieved a gross profit margin of 36.9%, an increase of 0.9 percentage points over the previous year; it achieved operating income of 618 million yuan, an increase of 28.9% over the previous year, accounting for 62.65% of the company's revenue, which is still the company's leading business. Furthermore, in 2016, the company's export business also continued to expand, and exports achieved sales revenue of about 230 million yuan, an increase of 53.35% over the previous year. The company firmly occupies a leading position in the fan industry and expands emerging industries: the company is a leading enterprise in the development and production of central air conditioning fans in China and a well-known manufacturer of construction ventilators (engineering fans). The company's core customers include leading brands in the world air conditioning industry and most mainstream domestic air conditioning companies. While stabilizing its leading position in the domestic market for air conditioning fans, the company has made frequent mergers and acquisitions in recent years, seeking new performance growth points through expansion, holding new marine materials in Qingdao, and gradually laying out and cultivating dynamic strategic emerging industries such as military industry and new materials. In the future, the company will continue to seek excellent targets in related fields. Tiecheng was successfully acquired, and two leaders joined forces to seek new development: At the beginning of the new year, the company's acquisition of Tiecheng, a leading company for new energy vehicle chargers, was approved, and Tiecheng Information is mainly engaged in R&D, production and sales of important parts for new energy vehicles such as vehicle chargers and DC converters for new energy vehicles. Famous domestic electric vehicle companies BAIC, JAC Kandi, and Jiangling all use Tiecheng charger products, and Tiecheng products are also exported to North America. The acquisition of Tiecheng Information will enable the company to enter the field of new energy automotive parts with high technical barriers, large market capacity, and good development prospects. At the same time, the company can use its own manufacturing capacity to produce accessories such as case radiators for Tiecheng Information's on-board chargers, so as to achieve complementary advantages. This acquisition further optimizes the company's business structure, helps enrich the company's profit growth points, and enhances the sustainability and stability of the profitability of listed companies. In 2016, Tiecheng Information achieved a net profit of 61.418 million yuan after tax, and the cumulative net profit commitment for 2017-2018 was not less than 145 million yuan. The company's acquisition will bring new highlights to the company's future growth. Investment suggestions: We expect the company's net profit from 2017 to 2019 to be 182 million yuan, 250 million yuan, and 348 million yuan respectively, corresponding to EPS of 0.41 yuan, 0.56 yuan, and 0.79 yuan respectively, with outstanding growth; maintaining the buy-A investment rating, with a target price of 18.96 yuan for 6 months. Risk warning: Tiecheng's performance falls short of expectations