Incident: On January 17, 2015, the company issued an announcement stating that it intends to establish a joint venture securities company. The securities business is the third type of financial business that Rong Sheng Chaowei got involved in after factoring and financial leasing. We believe that with the company's comprehensive transformation of financial control, the profit level will be greatly improved, and it will also have a strong synergy effect with the main business, and combine industry and finance to create the future of the company. The estimated EPS from 2015 to 2017 based on diluted share capital is 0.04 yuan, 0.08 yuan, 0.11 yuan, and the target price for 6 months is 30.7 yuan. Fixed growth helps main business development (1) The company's main business is declining steadily. The company's main business is the production of enameled wire supporting electronic information, household appliances, and defense technology. In recent years, due to the macroeconomic downturn and weakening market demand, the company's main revenue has basically remained around 1 billion yuan, and the growth momentum is weak. (2) A fixed increase will effectively reduce the capital limit for business expansion. The company's main business requires large capital scale, and the company's working capital is largely dependent on bank loans, and the expansion of business scale is limited by the listed company's own financial strength. A fixed increase in energy will greatly increase the company's capital strength and reduce the capital limit for business expansion. Comprehensively transform financial control, open up room for growth (1) Build joint venture brokerage firms, and raise profit levels. Financial cooperation is an important part of Guangdong-Hong Kong-Macao economic and trade cooperation, and benefiting from the continuous improvement of multi-level capital markets and the continuous increase in direct financing ratios, the securities industry is facing new development opportunities. Rong Sheng Chaowei plans to join Hong Kong and Shenzhen capital to establish joint venture securities companies to fully participate in the securities industry, and the company's profit level will increase markedly. (2) Get involved in commercial factoring and enrich profit models. The macroeconomic situation is grim, and the scale of accounts receivable continues to rise, providing broad development space for factoring business. The company establishes a subsidiary to develop factoring business, which can not only reduce the company's financing costs, have a synergy effect with the main business, but also enrich the profit model. (3) Participate in financial leasing and enjoy huge market space. The financial leasing industry is at its peak of development. As of September 2015, the number of financial leasing companies nationwide reached 3,742, an increase of 1,540 over the end of 2014. According to estimates by the Financial Leasing Professional Committee of the China Banking Association, the current leasing penetration rate in China is between 4% and 5%, far below the level of 15% to 30% in developed countries. As corporate financing needs increase, the industry has broad prospects for development. Rongsheng Ultra Micro has set up a financial leasing subsidiary, which can enjoy huge market space, broaden revenue sources, and have a good synergy with the main business, expand financing channels, and achieve industry-finance integration. Investment advice: The estimated EPS from 2015 to 2017 based on diluted share capital will be 0.04 yuan, 0.08 yuan, 0.11 yuan, and the target price for 6 months is 30.7 yuan. Risk warning: Securities business operating losses and financial leasing business bad debts have increased dramatically