Key investment events: We recently organized joint research on the company. The opinions are as follows: Comments: 1. As the only authorized distributors of technical ICs in A shares, the company has played a leading role in the semiconductor IC industry chain. The company is an authorized distributor of world-famous chip design giants Qualcomm, NXP, etc., and has a large number of corporate customers, especially in the Internet communications, smart phones, industrial control, and consumer electronics industries: such as Midea Electronics, ZTE, LeTV, Co-Jin Electronics, TCL, DJI, DJI, DJI, DJI, DJI, DJI. The company focuses on wireless connectivity chips and sensor chips, which are widely used in mobile payments, financial security, smart homes, smart cars, VR virtual reality and other fields. 2. The company is deeply involved in the Chinese market and understands the development trend of the IC industry. It is expected that in the future, there will be industrial extension mergers and acquisitions, and large-scale expansion of the upstream and downstream industrial chains. 3. In the context of the establishment of a semiconductor industry fund in the country and vigorously promoting the development of the IC industry in mainland China, the company is expected to take advantage of the capital market and encounter opportunities for rapid development. 4. The company's strong business, wireless connection chip, and sensor chip business, are the two basic technologies that make up the development of the Internet of Things, and has very good products and market positioning. Investment suggestions: We expect the company's main business revenue in 2016-2018 to be 14.45, 19.34 and 2,576 billion yuan, up 16.39%, 33.85% and 33.19%, respectively, and achieve net profit attributable to the parent company of 5900, 7800 and 103 million yuan, respectively, an increase of 43.34%, 32.48% and 31.39%, respectively. EPS is 0.49, 0.65 and 0.86, respectively, giving a target price of 70 yuan, 8.4 billion yuan, market value of 8.4 billion yuan, and a “buy” rating. Risk warning: IoT does not meet expectations risk, customer loss risk, and systemic risk.