The core view is that the traditional fan business has contributed to a steady increase in profit levels: The company's 2016 performance report shows that the company achieved total operating income of 982 million yuan, an increase of 22.80%, and realized net profit attributable to shareholders of listed companies of 119 million yuan, an increase of 23.69% over the previous year, mainly due to the merger of the performance of Qingdao Ocean New Materials, a holding subsidiary that disposed of idle real estate and acquisitions. The performance report revealed that the annual increase of 10%-40% in the previous company's third quarter report was basically in line with market expectations. Asset transfer and supporting capital raised for the proposed acquisition of charger companies was completed: On January 16, 2017, the company issued an announcement on the completion of asset transfer processing in Hangzhou Tiecheng information, and on February 23, it issued an announcement on the completion of supporting capital raising and the listing of additional shares. Among them, the company issued 15,875,912 shares to Tiecheng Information executives at an issue price of 13.70 yuan/share, and a non-public offering of 15,284,609 shares at an issue price of 14.23 yuan/share to raise supporting capital. The completion of the acquisition of Tiecheng Information, a leading charger company, will significantly enhance the company's strength in the NEV field and significantly enhance the company's performance. Two-wheel drive for new military materials and new energy vehicles: In 2015, the company acquired 51% of Qingdao Ocean New Materials, and developed damping materials, insulation and sound absorbing materials, etc. with broad military and civilian market prospects. The future will significantly benefit the development of new domestic marine equipment and the acceleration of maintenance and replacement; in 2017, China's NEV market is expected to recover. On February 8, China's NEV market is expected to recover. On February 8, China's NEV sales volume is expected to reach 800,000 vehicles throughout the year. Firmly optimistic about the future development of the NEV market, the NEV industry will steadily pick up and enter a healthy and sustainable path. Financial forecasting and investment recommendations We forecast the company's earnings per share for 16-18 to be 0.28, 0.31, and 0.35 yuan respectively. Referring to comparable company valuations and considering the company's future asset acquisition performance, we give a 20% valuation premium, corresponding to the target price for 2017 of 18.20 yuan, and maintain the “buy” rating. Risks suggest that economic recovery falls short of expectations, rail transit and cold chain development falls short of expectations, R&D and production of new military materials falls short of expectations, and NEV market development falls short of expectations