Investment Essentials: Maintaining an “Overweight” rating. The company's 2015 revenue was 12.988 billion yuan and net profit to mother was 161 million yuan, up 6.79% and 24.73% year-on-year, which is basically in line with our previous forecast. Under the new normal of the economy, infrastructure construction investment has increased dramatically, and the performance and market share of leading companies is expected to increase further. Considering the company's 600 million yuan capital increase for submarine cable companies to lay out new business, foreign investment and new market development will still take time to cultivate. We lowered EPS from 2016-17 to 0.37/0.48 yuan (originally 0.45/0.59 yuan), giving the company slightly higher than the average valuation level of the industry 40 times PE in 2016, and raising the target price to 14.6 yuan (original price 13.00 yuan) to increase the holding rating. Leading companies have steadily increased their market share and joined forces with China Aviation Trust to expand the new submarine cable market. The company's revenue for bare conductors, power cables, electrical equipment cables, communication cables and optical cables in 2015 was 47.90/66.04/10.24/169 million yuan respectively, up 24.72%, -2.33%, -3.40% and 150.56% year-on-year, and gross margin increased 1.79, 4.15, -0.24, and 7.96 percentage points. Product gross margin generally rebounded, and revenue of communication cables and optical cables increased significantly. On the other hand, the company's sales/management financial expenses were $355/2.08/257 million, up 33.41, 16.59%, and 13.83% year-on-year, mainly due to the company's increased investment in market development and R&D, as well as an increase in long-term and short-term financing. Affected by both the new normal of the economy and overcapacity in the industry, we believe that as a leading enterprise in the industry, the company has outstanding advantages in cash flow and product quality. Supply-side reforms in the cable industry are expected to greatly increase the market share of high-end cables, and join forces with China Aviation Trust to increase the capital of submarine cable companies by 900 million yuan to strengthen the future high-end cable development strategy, which is expected to guide the company into a new growth cycle. Risk warning: Submarine cable market development and aviation cable research and development fall short of expectations