The fixed increase indicates the direction, energy internet and military dual engine: According to the Jicheng Electronic announcement, the company plans to issue no more than 53.1607 million shares to no more than 10 specific targets at a reserve price of 22.32 yuan/share, and raise no more than 1,187 billion yuan in capital to build demand-side micro-energy grid operation and service projects, smart grid automation system upgrade research and development projects, ultrafine metal powder and 3D printing industrialization projects, and supplement liquidity to promote the company's strategic layout in the field of energy internet and civil-military integration business. Sekisei Electronics builds micro energy grid flagship: Sekisei Electronics constructs demand-side micro-energy grid operation and service projects. In the context of the new electricity reform, the transformation of integrated electricity service providers has become the common choice of many power equipment companies. It relies on the technical advantages it has accumulated over many years in power and utility automation, and the energy consumption data of 16,000 high-energy enterprises and 100,000 gas users across the country to carry out micro-energy grid operations and services to help users reduce electricity costs, ensure electricity safety, improve electricity efficiency, and improve the overall efficiency of energy use. On this basis, the company can carry out tasks such as energy saving and operation and maintenance, comprehensive energy utilization to reduce energy costs, virtual power plants, load transfer, and micro energy grid design, operation and maintenance, etc., to build a leading domestic energy internet cloud platform, and the platform strategy can bring continuous and stable cash flow to the company. The military industry is making further efforts, ultrafine powder and 3D printing: Another direction the company is determined to increase is ultrafine technology powder and 3D printing. In the future, the company will also strengthen the expansion of the civil-military integration business, and it is expected that other projects will be implemented. In June 2015, the company increased the capital of Ningbo Zhongwu Rio Tinto Ultrafine Materials Co., Ltd. with its own capital of 30 million yuan, holding 30% of its shares. Sinowu Rio Tinto is mainly engaged in the development and marketing of ultrafine metal powder preparation technology and production equipment. The two sides plan to jointly invest in the establishment of an industrialization base for ultrafine metal titanium alloy powder and derivatives, rely on the ultra-fine metal atomization milling system and its metal atomization device, accelerate the industrial application and promotion of ultrafine metal powder, and enter the application and promotion of 3D printing services using ultrafine metal powder as the base material, which will help the company improve the ultrafine metal powder industry chain and expand new business fields. Technology is the leader, supported by performance: Jicheng Electronics strengthens the upgrade research and development of smart grid automation systems and continuously improves the technical level. At the same time, the State Grid invested 404.4 billion yuan in electricity in 2015, an increase of 9% over the previous year. At the same time, it is necessary to speed up the construction of distribution grids and the intelligent upgrading of power grids. The share of Jicheng electronic scheduling automation products in the prefecture-level market is close to 30%. We expect the revenue growth of the cumulative electronic distribution network automation business to remain above 12%. Investment advice: We expect the company's net profit share EPS from 2015 to 2017 to be 0.45 yuan, 0.56 yuan, and 0.73 yuan, respectively. With the acceleration of agricultural distribution network investment and the advancement of the energy Internet, we expect the company's performance to continue to improve. Risk warning: The energy internet and military project expansion are falling short of expectations.