Investment points: A different view from the market: As a leading supplier of wireless peripherals in China, Leber Technology is actively developing new businesses while building on its traditional main business, and will focus on the development of integrated systems for drones and industrial robots. We believe that the drone and industrial robot integrated system business selected by the company is in line with the direction of technological development, and the market space is huge. The company relies on its many years of experience and early layout in the manufacturing field, cooperates with Zero Intelligent Control and Tencent on drones, cooperates with Huawei in robot integration systems, and cooperates with outstanding enterprises in the industry. It has lofty ambitions and is down-to-earth. It is worth looking forward to high growth in the future. Drone technology has been deeply accumulated, and Tencent has joined hands to build a drone video sharing community. As aerial robots, drones have a wide range of uses and are growing rapidly. According to an analysis by EVTank, the global sales volume of civilian drones was 378,000 in 2014. Among them, the sales volume of civilian drones in China is 4 billion yuan, and it is expected to maintain an increase of more than 50% in the next few years. Leber Technology grasped market opportunities and joined forces with Zero Intelligent Control to enter the drone field. The Xplorer series drone products developed were recognized by the market. Zero Intelligent Control is a leading consumer drone manufacturer in China, and has a deep technical accumulation, second only to the leading DJI. At the beginning of 2016, Leber Technology and Tencent reached a partnership on drones and have released YING Sky Shadow drone products. Leber Technology has advanced drone technology and product manufacturing experience, and Tencent has a huge active user base and QQ and WeChat social platforms, with the intention of building a drone video sharing community. We believe that with Tencent's resources and capabilities, it is entirely possible to achieve this goal, which will bring huge development opportunities to our partner Leber Technology. It has extensive experience in the application of industrial robot integrated systems and has transformed into an intelligent manufacturing solution provider. The founder of Leber Technology specializes in automation control and has invested heavily in the company's production automation. He started early. The company already has 11 years of practical experience in the application of integrated systems for industrial robots. The company recently established Shenzhen Leibai Robotics Intelligent Equipment Co., Ltd. to export the experience accumulated over many years, provide integrated robot system application services to 3C manufacturers, and transform into an intelligent manufacturing solution provider. We believe that with the increase in labor costs in China and the transformation and upgrading of the manufacturing industry, the intensity of use of industrial robots in China will gradually increase. Along with this trend, a large number of Chinese enterprises will benefit. The company's industry has huge market space, and there are currently plenty of orders in hand. With the completion of the construction of a new generation of intelligent flexible model production lines and the commissioning of standardized equipment for 3C robot integration systems, the company is expected to grow rapidly. Endogenesis and extension develop in unison. While maintaining the steady development of the traditional wireless peripheral business, the company explores new businesses through investment, establishment, and mergers and acquisitions, and plans for the company's long-term development layout. The company has set up a 150 million yuan industrial merger and acquisition fund to seek strategically significant investment and M&A projects at home and abroad, and accelerate expansion in intelligent manufacturing, drones, artificial intelligence, and the company's surrounding business fields. We believe that the company's revenue scale is small, the actual controller's shareholding ratio is high, and the development model of endogenesis plus extension is viable. Profit forecast and valuation: Regardless of the increase in share capital or the impact of the Lehui World incident, we expect the company's main business to contribute 0.13, 0.52, and 0.97 yuan in EPS in 15-17; considering the impact of the Lehui World Incident, we expect the company's EPS in 15-17 to be -1.50, 1.18, and 0.97 yuan, and the current stock price corresponds to 25-30 times PE in 16-17. Considering the cooperation between the company's drone and Tencent, the Internet business model grants a valuation premium, and subsequent mergers and acquisitions extension actions can be expected. First coverage, highly recommended, with a target price of 42 yuan. Risk warning: Additional distribution is progressing slowly, and drone community operations are falling short of expectations.