Traditional business is shifting to a competitive direction: The company is a leading domestic manufacturer of PC peripherals such as traditional keyboards, mice, speakers, and headphones, and has strong channel capabilities and a high market share at home and abroad. PC sales have declined in recent years, but the rapid development of e-sports around the world has driven the rapid development of the high-end mouse and headphone markets. The company has transformed into high-end e-sports peripheral products through years of technology accumulation. Internet cafes, as places for extraordinary gaming experiences for young people, are the main market for the company's high-end products. According to the game industry information agency Newzoo, the number of global e-sports players reached 45 million in 2014, and this number will grow to 86 million in 2017. With its excellent product quality and high cost performance ratio, the breakthrough achieved by the company in the competitive peripheral product market will expand beyond the traditional market and help the company's performance grow. Cooperate with Zero and Tencent to seize the consumer drone market: According to American aviation consulting firm TealGroup, the consumer drone market will grow faster in the next few years. The market size was $2.8 billion in 2014, and this figure will double to $5.6 billion by 2020. As a huge demand market for civilian drones, China's market size is expected to reach 11 billion yuan in 2018 and soar to 75 billion yuan in 2025. Facing a good development space, the company has entered the consumer drone market in a strong and high-profile manner by leveraging the advantages of domestic and foreign channels it has built over many years and a strong alliance with zero degree intelligent control, a leader in drone technology. Drone products such as Xplorer 1, Xplorer 2, and Mini, which have been launched one after another, are comparable to DJI's products. At the same time, the company cooperated with Tencent to launch an airborne drone, with the intention of using Tencent to develop into a popular drone social platform, rapidly expand market share, and further build its brand. We believe that the company's reliance on high-quality, high-value drone products can fully open up the fertile ground for high growth in drones and provide a new engine for the company's continued rapid growth in future performance. Vigorously deploying the robotics business, and has already won orders: The company has established a robotics company based on the integrated development of automation in the internal 3C field, and has begun to design, plan, and implement robot production lines, or integration projects for other 3C companies. Currently, there are orders of 90 million yuan, and new orders are expected to increase by another 200 million yuan during the year. At the same time, the company continues to accelerate the commercialization process of the robot solution business in order to seize the development opportunities of the industrial robot industry. In November 2015, the company prepared to raise capital through a non-public stock offering for the development and promotion of the company's robot and drone projects. Of this amount, 340 million yuan is used for the robot integrated system equipment industrialization project. It is dedicated to commercializing the procedures and actions of robots. It can adapt to the detailed actions of 3C industry enterprises in various processes, making it a product sold to customers in the industry. Profit forecast: We forecast the company's EPS from 2016 to 2018 to be 0.55, 0.78 and 1.07 yuan, respectively. The current PE multiples corresponding to the company's stock price are 89.2 times in '16, 63.4 times in '17, and 46 times in '18, respectively. The company's valuations in '16 and '17 were well above the average valuation level of the industry; considering the company's potential for future growth in the field of drones and robotics, it was given a “recommended” rating for the first time. Risk warning: the risk that the company's e-sports PC peripheral equipment market in the Internet cafe market will expand less than expected; the risk that competition in the consumer drone market will increase.