Investment points: The RF coaxial cable market has a wide range of application areas. The company's main products are RF coaxial cables. From a downstream perspective, RF coaxial cables are widely used in electronic equipment, mobile communications, radio and television, aerospace and other fields. The international RF coaxial cable market is highly concentrated. America's Baitong, Gore, Sweden's Habbo, France's Nexon, Japan's Sumitomo, and Hitachi are the main producers of RF coaxial cables; the domestic RF coaxial cable industry started relatively late. Currently, most of the domestic RF coaxial cable industry is dominated by low-end homogenized products, and gross margin levels are low, and the high-end product market has been occupied by foreign manufacturers for a long time. The company has a rich product range, and its technical level is at the forefront of domestic companies in the same industry. The company is one of the domestic manufacturers with a complete range of RF coaxial cables and strong brand influence. It has its own stable customer base in the high-end RF coaxial cable field occupied by multinational enterprises, including many world-renowned electronic equipment manufacturers such as Apple, Samsung, HP, Lenovo, TP-LINK, etc., and has established long-term strategic cooperative relationships with many military enterprises. Military hardware or systems such as the “Shenzhou” series ground launch systems and military survey vessels all use the company's products, representing the advanced level of the domestic stable phase microwave and radio frequency coaxial cable manufacturing industry, and establishing the market position of the company's products with high technology and high quality. The company has strong profitability and the ability to develop continuously. Thanks to industry development and the company's advantages in technology research and development, product quality, brand and reputation, customer resources, service and management, etc., the company's main business developed well. The company's revenue from 2013 to 2015 was 251 million yuan, 243 million yuan, and 264 million yuan respectively. The gross margin was 26.73%, 24.43%, and 25.65% respectively. It remained stable in the face of increased competition in the product market, reflecting the company's good bargaining power, and the product's strong market competitiveness. Fund-raising projects enhance overall competitiveness. The company's RF coaxial cable sales scale is showing a steady upward trend, but due to capacity limitations, the capacity utilization rate has reached nearly 100%, and the production line is operating at full capacity. It is planned to invest 178 million yuan in capital for the construction of “fine and ultra-fine RF coaxial cable construction projects”, “stable phase RF coaxial communication cable and component construction projects”, and “RF coaxial communication cable and component research and development center projects” to ease the company's production capacity bottlenecks. It is expected that the market share will increase further in the future. The estimate is reasonable and the value is higher than the issue price, so a subscription is recommended. We expect the company's EPS in 2016, 2017, and 2018 to be 0.55 yuan, 0.64 yuan, and 0.75 yuan respectively. Referring to the valuations of comparable companies in the industry, considering the development space of the RF coaxial cable industry and the benefits brought by the company's production capacity expansion, we gave the company 30-35 times dynamic PE in 2017, with a corresponding value range of 19.20-22.40 yuan. Currently, the company's issue price is 8.84 yuan, which is below the lower limit of the reasonable value range, so we are giving subscription suggestions. The main risk factors. Increased competition in the industry led to a decline in gross margin; the progress of fund-raising projects fell short of expectations.