Leading filter material industry, high R & D investment guarantee. The company started as an agent for European filter brands, and entered the GEM market in 2010. Mainly engaged in R&D, production and sales of high-performance high-temperature filter materials, the core components of bag filters, it is the only listed company for domestic high-temperature bag dust filter companies. In 2015, the company achieved sales revenue of 688 million yuan, an increase of 51.41% over the previous year; net profit attributable to shareholders of listed companies was 68.87 million yuan, an increase of 17.43% over the previous year. The company has long attached importance to R&D. In recent years, the share of R&D investment has continued to rise. In 2015, the company invested 29.05 million yuan in R&D, accounting for 4.2% of revenue. Acquired Roca Environmental Protection and got involved in flue gas treatment. In April 2015, the company purchased 100% of Roca Environmental Protection shares for 252 million yuan. Roca Environmental Protection specializes in flue gas denitrification. Relying on SCR, SNCR and other technologies, it provides technical support and equipment supply to flue gas denitrification system integrators. Currently, in addition to being used in thermal power, products and technologies can also be used in urban heating, cement furnaces, steel, waste incineration, etc. Through this merger and acquisition, 3D Wire integrates superior resources for dust removal and desulfurization to expand the flue gas treatment industry chain horizontally. The company promised that in 2014, 2015, and 2016, Roca Environmental will achieve net profit of 26.5 million yuan, 33.13 million yuan, and 41.41 million yuan after deducting non-recurring profit and loss, respectively. Acquire Xiamen Pating and enter international bulk material transportation and storage. In September 2015, 3D Silk purchased 80% of Xiamen Peting's shares held by Kunna Trading and Shangyue Investment for 70.48 million yuan. After the transaction is completed, 3D Silk will directly hold 100% of Xiamen Peting's shares. Xiamen Perting is mainly engaged in the R&D, design and integration of bulk material transportation and storage systems. Most of its end customers are in the same industry as 3D wire customers, including thermal power, steel smelting, etc., and are at the cutting edge of the industrial chain. The business already covers mainland China, Taiwan, the United States, Germany, Australia, Vietnam, the Philippines, Indonesia, etc., accounting for 90% of overseas revenue from January to October 2015. After the acquisition of Xiamen Perting, 3D Wire can not only provide customers with services such as design, integration and maintenance of front-end bulk material transportation and storage systems, but also provide customers with comprehensive environmental protection services such as dust removal and denitrification for back-end flue gas treatment. Relying on 3D Wire's comprehensive environmental service platform, Xiamen Perting's performance will also grow rapidly. According to performance promises, the net profit of Xiamen Perting's audited owners in 2015, 2016, and 2017 after deducting non-recurring profit and loss was not less than 72 million yuan, 97.2 million yuan, and 13.122 million yuan, respectively. Profit forecasting and valuation. The company is expected to achieve operating income of 11.44 billion yuan and 1,707 million yuan in 2016-2017, and achieve net profit of 1.78 and 248 million yuan, corresponding to EPS of 0.48 and 0.66 yuan, respectively. Referring to the same industry valuation and the company's business development, the company will be given 50 times PE compared to 2016, corresponding to the target price of 24 yuan, and a purchase rating. Risk warning. (1) Performance promises fall short of expectations; (2) M&A integration is poor; (3) Xiamen Perting's overseas expansion is poor.