Key investment events: The company held the “Changhong ChiQ Laser Cinema New Product Launch Conference” at the end of 2016, released the C5F ultra-short focus full HD artificial intelligence laser cinema TV product, and officially entered the laser TV market as a flagship product. At the press conference, the company invited company spokesperson Deng Chao and the leader of the China Electronic Chamber of Commerce to price the C5F product 49997 (including 1 100-inch Fresnel optical screen), reflecting the company's emphasis on laser TV products and the high-end large-screen market strategy. At present, both Changhong's official website and JD have already launched sales, and other channels are gradually being opened. Traditional big brands combine new laser TV products, and the company invigorates the big screen strategy: in the future, super TVs based on LED/laser projection technology will soon explode. As a traditional big brand, Changhong, combined with new laser TV industry trends, will give the company an advantage on the big screen battlefield. First, with the rapid rise of the video business, users' demand for TV screens is getting higher and higher. Laser TVs have many competitive advantages such as oversized screens, high brightness, small size and portability, relatively low cost, and long service life, and will take the lead in the upcoming big screen war. Second, the maturity of the industrial chain continues to increase, and Changhong laser TV production capacity and costs continue to improve. This includes the gradual maturity of high-power high-lumen RGB three-color laser light source technology, the unification of display technology based on DLP solutions, the further maturity of core technology in optical engine design and process processing, the expansion of lens production capacity to meet future production plans, and the rapid decline in costs due to large-scale mass production capacity of anti-light screens. Finally, we believe that the next two years will be a period of rapid explosion of hot products. The cost decline brought about by mass production on the supply side and the demand side's premium desire for oversized screens will be matched at an appropriate price point, thus triggering the market. Sichuan Changhong attached importance to the development of laser television products and established a laser display technology company, which invested quite a lot of manpower and financial resources, spared no effort to integrate industry chain resources and increase production capacity. He is optimistic that the company will gain an advantage in the 2017 industry competition and gain a head start in the big screen war. Optimize and consolidate the main business and expand the pan-Changhong strategy: The company proposed the Pan-Changhong Strategy to further optimize and diversify the company's industrial structure. 1. The black and white electricity business is still the foundation of the company's business, accounting for 40% of total revenue. As the home appliance market has gradually changed from an incremental market to a stock market, the company has enhanced innovation capabilities and accelerated the layout of upstream components; 2. In terms of IT business, it continues to expand major customers and expand distribution fields and products; 3. Group companies inject assets to carry out diversified operations. Improved management capacity and strict control of exchange risks: the company exports about 12 billion yuan of products a year, and also needs to import some materials, all of which are settled in foreign currencies such as US dollars. When the RMB exchange rate fluctuates, the company's foreign operations are prone to exchange losses. As a result, the company lost a lot in 2015. As a result, the company carried out a total of 3,545 million US dollars in forward foreign exchange transactions, further reducing the company's operating risks and enhancing profitability. Profit forecast and investment rating: The company's 2016-2018 EPS is expected to be 0.15 yuan, 0.15 yuan, and 0.30 yuan, corresponding to PE 29/28/14 X. We are optimistic about the company's layout in the laser TV industry and expect 2017 to enter a period of rapid development, giving it an “increase in holdings” rating. Risk warning: The development of the traditional home appliance business falls short of anticipated risks, increased competition in the laser TV business leads to the risk of a decline in gross margin, and the risk of loss due to external guarantees.