Incident Central Asia Co., Ltd. (300512.CH/RMB 38.10, purchase) increased the capital of Zhongwu Optoelectronics at a price of 9.76 million yuan. After the capital increase is completed, the company will hold 12% of the shares in Zhongwu Optoelectronics; at the same time, after the capital increase is completed, the company will transfer 18% of Zhongwu Optoelectronics's shares held by Little Star, Zhongwu Jiading, Chen Jiakang, and Yang Xuemei. After the capital increase and share transfer were completed, the company held 30% of Zhongwu Optoelectronics's shares. Key points supporting the rating The company is a leading domestic liquid food packaging machinery manufacturer, committed to developing sterile, energy-efficient, and integrated high-end equipment. The company has mature aseptic environment control technology and dry sterilization technology, and can provide all kinds of packaging equipment with various hygiene levels, such as clean, ultra-clean, and sterile. Investing in Zhongwu Optoelectronics can further enrich and enhance the company's sterilization technology, increase sterilization methods, improve sterilization efficiency, and meet the company's sterile, energy-efficient and efficient R&D goals. At the same time, it can also extend the company's industrial chain, enhance the overall competitiveness of the company's products, cultivate new profit growth points for the company, and conform to the interests of the company and all shareholders. Ningbo Zhongwu Optoelectronics is a military to civilian high-tech company established by the China Institute of Engineering Physics. It is also the first domestic supplier of a pulsed strong light sterilization system integrating independent R&D, production and sales. Pulsed strong light sterilization technology is a novel cold sterilization technology that can be used to replace traditional sterilization of food and packaging. It can instantly damage the cell wall and nucleic acid structure of microorganisms, thereby killing microorganisms. As a new surface cold sterilization technology, pulsed strong light sterilization technology can effectively extend product shelf life and increase safety through its sterilization treatment. The technology has the characteristics of high efficiency, speed (nanosecond level), broad spectrum, environmental protection, no significant temperature rise, flexibility, etc., and has little effect on food flavor and nutritional components. It can be applied to food, medicine, environmental protection and other industries, and has broad development prospects. Zhongwu Optoelectronics has gathered technicians in the fields of optics, electronics, mechanics, etc., and has a series of products such as solid particle sterilization equipment, aquatic seafood sterilization equipment, powder particle sterilization equipment, packaging material sterilization equipment, fluid juice sterilization equipment, etc. The products have been applied to well-known enterprises such as Yili, Mengniu, Guanshan mineral water, Hunan Yiyang Royal Foods, and Hunan Arui Foods. 2015 revenue of 4.15 million yuan, net profit of 330,000 yuan. The company's capital operation is a small step, and it is also the first step. The company has a clear strategy, steady operation, abundant cash, excellent product quality, large market space, and sustainable growth. We expect net profit of 1.5, 180, and 210 million yuan in 2016, 2017, and 2018, and 56 times the 2017 price-earnings ratio corresponding to the current market value. Based on the comprehensive valuation level and company growth, the purchase rating is maintained, and the target price is 45.00 yuan.