Main opinion 1. Deeply involved in the field of motion control. During the reporting period of rapid growth in the company's performance, the company's net profit is expected to increase 23%-43% year-on-year. The main reason is that the company continues to increase its market expansion efforts and strengthen management. 2. Upgrading the manufacturing industry boosts the rapid development of companies. With the continuous upgrading of China's manufacturing industry, the shortage of Chinese labor, and rising labor costs, the labor advantages that many enterprises have relied on for a long time are gradually disappearing. Enterprises need to rely on technological improvements to improve productivity levels. This has also promoted the transformation and upgrading of enterprises, thus providing automation manufacturers with unprecedented market opportunities. The company is one of the earliest companies in China to focus on motion control technology research. Currently, it has a certain level of popularity in the domestic motion control industry. The company is one of the few domestic enterprises that fully master high-speed and high-precision motion control technology for complex curved curves and provide mature commercialized products, and independently owns all intellectual property rights of motion control technology. Furthermore, the company adopts a direct sales model close to customers, has independent pricing rights, and will be the first to benefit from the upgrading of the manufacturing industry. 3. The IPO raised 210 million dollars to enhance the company's competitiveness. The capital raised by the company this time will be used for integrated controller product upgrade and production expansion construction projects, R&D center construction projects, national marketing network construction projects, servo drive industrialization projects, and other operating capital related to the main business. After completion, the project will improve the company's production efficiency and reliability, enhance R&D capabilities, improve the marketing network, and ultimately increase the market share and profitability of the company's products. 4. Investment suggestions: The company's net profit for 16-18 is estimated to be 44 million yuan, 56 million yuan, and 72 million yuan. The corresponding EPS is 0.77 yuan, 0.99 yuan, and 1.27 yuan, and the corresponding PE is 65X, 51X, and 39X. Maintain recommendation ratings. 5. Risk warning: Market competition intensifies and gross margin decreases.