Event: according to the annual report released by the company in 2016, the company's operating income from January to December 2016 was 415.5035 million yuan, an increase of 14.95 percent over the same period last year; the net profit belonging to shareholders of listed companies was 36.8432 million yuan, an increase of 13.50 percent over the same period last year; and basic earnings per share was 0.57 yuan, an increase of 14.00 percent over the same period last year.

The demand for official law enforcement boats is broad, and the business expansion will create a new growth point in the future. In 2016, the company's largest main business, official law enforcement boats, achieved an operating income of 325 million yuan, an increase of 29.45% over the same period last year, accounting for 78.16% of the total revenue. Among them, the company's largest customer, the logistics equipment department of the China Sea Police Bureau, has annual sales of 130 million yuan, accounting for 312.5% of the revenue of this business segment. In June 2016, the company established a joint venture company, Aolong Boat, in Australia, making use of local sales and manufacturing advantages to develop high-speed passenger boats and aluminum alloy official boats, and successfully won the bid for a 42-meter catamaran high-speed passenger ship from Zhuhai Expressway passenger ship Co., Ltd. In addition, on the basis of official law enforcement boats, the company actively develops the supporting industry of ships, as well as the business of ultra-high-speed marine law enforcement ships and military auxiliary ships, which is expected to become a new performance growth point of the company in the future. With the deepening of China's attention to marine rights and interests, water law enforcement equipment will continue to upgrade, and the demand space for official law enforcement boats is very broad.

Tourism and leisure boats pay attention to energy saving and environmental protection, and benefit from the market prospect of consumption upgrading. In 2016, the company's operating revenue from tourism and leisure boats reached 84 million, accounting for 20.14% of the total revenue. In order to enhance the technical strength of the new energy and environment-friendly boat market, the company has established a strategic cooperative relationship with Beiche Shipbuilding and Ocean Engineering Development Co., Ltd., and has carried out technical design and development cooperation with many colleges and universities and scientific research institutes. In the whole year, a total of 19 R & D projects were carried out, 5 new invention patents and 26 utility models were added, and the technical strength in energy saving and environmental protection was further enhanced. The company's tourism and leisure boats will fully benefit from the development of China's aquatic tourism and leisure industry and the demand for consumption upgrading, and the market prospect will continue to improve.

Profit forecast and investment rating: the company's net profit from 2017 to 2019 is expected to be about 48 million yuan, 57 million yuan, 64 million yuan, EPS is 0.56,0.66,0.74 yuan, corresponding to PE is 62 times, 52 times, 46 times, given a "buy" rating.