Key points of the report The incident description company issued an announcement. The holding subsidiary Manta Intelligence plans to invest 510,000 yuan to establish a joint venture with Hu Jinhui, Jin Long, and Ji Xiaodong to establish Shenzhen Manke Artificial Intelligence Technology Co., Ltd. (tentative). Manta Intelligence holds 51% of the shares. Incident Review teamed up with a senior domestic team to deploy machine vision, and the intelligence of drones has taken an important step. The newly established company aims to form an artificial intelligence team centered on machine vision and image processing. Among the natural persons participating in the shares, Hu Jinhui and Jin Long are the main creators of UCVR (UCVR), and have deep R&D accumulation and industry experience in image processing and machine vision. Machine vision uses machines instead of the human eye to make measurements and judgments. Images are taken by computers to simulate human visual function and extend human vision. It includes three parts: imaging, perception, and understanding, and is one of the important frontiers of artificial intelligence. Intelligence is the mainstream development trend of drones, and machine vision is not only a necessary prerequisite for intelligence, but also a difficult point for urgent technological breakthroughs. In the first half of the year, DJI led the industry to launch Genie 4, which has initial machine vision capabilities, and Amazon and Intel have also successively acquired machine vision teams. In the short term, Shenzhen Manco will accelerate the upgrading and improvement of the company's drones in terms of visual tracking, face recognition, and obstacle avoidance; in the long run, Manco will conduct in-depth exploration in artificial intelligence fields such as environmental modeling and cognition to provide technical reserves for autonomous flight and driverless driving in the future. Manta Smart S6 debuted in August. Based on a new chip architecture (not a Qualcomm platform) and independent development of underlying systems and process advantages, the S6 not only achieves perfect camera functions under a beautiful body, but also expands more ways to play. We believe that the S6 is ahead of almost all current competitors in terms of overall quality, will allow more people to experience the fun of drones, and is expected to become the first phenomenal portable drone product. Emerging businesses such as drones are poised to develop, and we are optimistic about the company's medium- to long-term development prospects: building a full range of optical technology applications based on the themes of “light lighting” and “light health”. Brand and sales channel construction are expected to see initial results; collaborating with Fushun Optoelectronics to open up a new space for LED-related applications. Manta, a holding company, has strong R&D capabilities, large R&D investment, and abundant production capacity. The new portable product S6 was released in August, and may become a phenomenal product in the blue ocean selfie market. The development model of “endogenous growth plus extended development” has been established, and it is expected that capital integration will continue to be carried out upstream and downstream of the consumer electronics and new energy vehicle industry chains in the future. Performance forecasts and investment recommendations: Net profit for the years 16 and 17 is expected to be about 0.90 million yuan and 130 million yuan, EPS is about 0.25 and 0.36 yuan/share, respectively, and corresponding PE is 67 and 46 times, respectively, maintaining the “buy” rating.