Event: The company achieved operating income of 1,565 billion yuan in 2016, an increase of 15.01% over the previous year, and realized net profit attributable to the parent company of 7.31 million yuan, turning a loss into a profit, with an EPS of 0.01 yuan. The company achieved operating income of 430 million yuan in the first quarter of 2017, an increase of 19.83% over the previous year, and realized net profit attributable to the parent company of 2.05 million yuan, turning a loss into a profit over the previous year. Comment: The company is a leading enterprise in the domestic aluminum products industry. Its main products include aluminum alloy non-composite materials, aluminum alloy composites, and aluminum-based polymetallic composites. The three categories of products accounted for 91.76%, 5.27%, and 1.24% of revenue in 2016, up 13.01%, 23.91%, and 68.60%, respectively. Among them, aluminum-steel composites are key materials for core components of air-cooled power plants, and gross margin increased by 4.37% to 17.58%. The gross margin of aluminum alloy non-composite materials improved to 7.60%, and the gross margin of polymetallic series increased by 14.49% to 23.26%. With the basic completion of the commissioning of the fund-raising project, the metal composite production line with an annual output of 200,000 tons has entered the production stage. The company's production capacity has increased dramatically, and the main operating performance is expected to be further released. In terms of orders, nearly 40% of the nearly 300 million yuan order signed by the company in 2014 has not been completed. At the same time, a new contract of about 400 million yuan per year was signed with Valoe in early '17, with a performance period of 5 years. Adequate order reserves guarantee the company's performance, and future growth is highly certain. Multi-sector layout. Military+3D printing has promoted further growth in the company's performance. Since 2014, the company has gradually entered the military field, signed strategic cooperation agreements with the China Ordnance Science and Technology Research Institute and Shipbuilding Heavy Industry Group, and acquired the remaining 5% of Yinbang Precision's shares, changing its name to Yinbang Defense, as an important point in the company's military market. The company has now obtained four military industry licenses, and the volume of military orders in the future will greatly increase the company's profits. In terms of 3D printing, the company has a 45% stake in Feierkang and signed a “printing denture” strategic cooperation agreement with JieGuan Medical to enter the field of 3D medical printing. At the same time, Feierkang is the only 3D printing company in China that has obtained COMAC supplier qualification. In the future, with the scale and quality of the aviation manufacturing industry, Feierkang's advantages will become a new flashpoint for the company's performance. Maintain a “buy” rating with a target price of 9 yuan: We predict that the company's EPS from 2017 to 2019 will be 0.12 yuan, 0.20 yuan, and 0.23 yuan respectively, giving a target price of 9 yuan to maintain the “buy” rating. Risk warning: risk of macroeconomic downturn; risk of 3D printing business falling short of expectations.