Report summary: The company released its 2016 annual report, achieving operating income of 1,565 billion yuan, an increase of 15.01% over the previous year, and realized net profit attributable to shareholders of listed companies of 2007 billion yuan, the same period last year -- 187 million yuan, an increase of 103.91% over the previous year; in the first quarter of 2017, it achieved revenue of 430 million yuan and net profit of 0.2 billion yuan, an increase of 376.14% over the previous year. Product sales increased sharply, and the annual report performance turned a loss into a profit: The company turned a loss into a profit this year, losing 187 million yuan in the same period last year, mainly during the reporting period, with the release of new production capacity, product sales increased. During the reporting period, product sales were 108,300 tons, up 21.47% year on year, and polymetallic composites sales were 15,500 tons, up 42.61% year on year. At the same time, product yield increased, gross margin increased sharply, and the company's product structure continued to improve, and the company's product structure continued to improve, and it is expected that it will continue to grow significantly in the future. The military industry layout continues to deepen, and 3D printing has entered a period of rapid growth: the company used the power of the People's Democratic Forces to sign a strategic cooperation agreement with the China Institute of Ordnance Science and Engineering to jointly research high-performance metal protective materials, and cooperate with CSIC 702 to provide technical advice on 702 metal-layer materials and 3D printing, and support 702 product upgrades. At present, the company has obtained three military industry licenses, and the company's new protective materials have entered the army and navy equipment in small quantities. Relying on Feilerkang, the company's 3D printing has entered high-end potential markets such as aerospace, medical services, and molds. The aerospace sector has now obtained commercial aviation certification, and JieGuan Medical in the medical service field has cooperated in the 3D printing denture business. The company's 3D printing has entered a fast track of growth, and is expected to continue to grow rapidly this year and the next few years. The introduction of the second phase of the employee stock ownership plan shows confidence in the company's development: the company launched the first phase of the employee stock ownership plan in 2016. The number of purchases in the secondary market accounted for 0.97% of the company's total share capital. This year, the second phase of the employee stock ownership plan was introduced again at 190 million yuan. The continuous long-term incentive mechanism also further demonstrated the confidence of the company's management and employees in future development. Investment recommendations and ratings: The company's net profit for 2017-2019 is estimated to be 150 million yuan, 204 million yuan and 251 million yuan, EPS is 0.18 yuan, 0.25 yuan, and 0.31 yuan, and price-earnings ratios are 42 times, 31 times, and 25 times, respectively. Give a “buy” rating. Risk warning: the development of new military materials has not progressed as expected; sales of aluminum alloy materials have fallen short of expectations