The company successfully acquired Shikai Technology, successfully transformed the military industry, and the company acquired Shikai Technology, and successfully transformed the military industry. Shikai Technology is mainly engaged in the development of optoelectronic technology in military weapons and equipment. Its main product is a guidance system that accurately attacks moving targets. It has been fixed and installed side by side, and has strong profitability. Currently, orders are full, and next-generation products are being developed. Performance promises for 2016 to 2018 are 60 million, 73 million, and 86 million, respectively, and the company's performance will be significantly increased after the announcement. Furthermore, in early 2016, the company announced that it plans to establish a 200 million yuan military and civilian integrated industry venture capital fund in Xi'an. It is expected that it will continue to accelerate the military industry's related layout in the future. Transform rail transit informatization and create new profit growth points. The railway WIFI market will open, with a market capacity of several billion. Fuhua Yuqi has successfully carried out business transformation using rail transit informatization as an entry point. In addition to being a Wi-Fi supplier for ordinary trains, the company's high-speed rail wifi has also been successfully developed and tested on high-speed rail. In the future, the high-speed rail and urban rail transit fields will continue to contribute revenue. Fuhua Yuqi's product promotion has been quite successful since 2016, and has received large orders in the fields of railway communications and mine communications. We believe that the company has gradually entered a rapid development path and will become an important growth point for listed companies in the future. Leading in the coal mine safety industry, product transformation has helped to drastically improve performance growth. Since 2011, due to the overall downturn in the coal mine safety production monitoring industry, the company's business performance has continued to decline. This trend began to gradually improve in 2105. The performance forecast for the first half of 2016 turned a loss into a profit, showing an inflection point in performance. Although the three-quarter report still lost money, the amount of loss was small. We believe that the main reason for the improvement in the company's profit is that the downstream coal industry has basically bottomed out. In the future, the economic index and coal prices are expected to continue to improve or be relatively stable, and the profitability of enterprises is expected to improve marginally. At the same time, the company is also implementing product transformation to improve profitability. The company will use mining monorail cranes as a breakthrough to develop and produce mine transport locomotive systems. Through deep cultivation in the traditional coal industry, the company will enter the field of mine auxiliary transportation. At present, the company's related products have been finalized. In the future, it is hoped that the price and service advantages of the products will be used to quickly occupy the market and gradually replace imports. The valuation and investment recommendations estimate that the company's net profit for 2016-2018 will be 300 million, 116 million and 156 million yuan respectively, EPS will be 0.05, 0.18 and 0.24 yuan, and the current stock price corresponding to PE is 189x, 49x and 37x. The company currently has a small market capitalization and large space for military and railway communications services, giving the company a “recommended” rating.