Key investment points: Asset restructuring introduces high-quality asset Lianyi Motor, with first-class technical strength. Lianyi Electric is one of the leading micromotor companies in China. Its main products are AC, permanent magnet DC, brushless, stepper, servo motors and other micromotors and electric push rod actuators. Downstream applications include audio-visual equipment, sports machinery, and automation equipment. The downstream customers that the company has cooperated with for a long time include Matsuoka Electromechanical (China) Co., Ltd., Kunshan Bodong Wheelchair Parts Co., Ltd., and many other well-known domestic and foreign companies. At present, the company has significantly entered a stage of rapid business growth in business fields such as automated servo motor systems and scooters. Robotic servo motors and control systems are about to be released, taking the lead in laying out the blue ocean market for special robots. The company began developing robot servo motors and system core technology in 2012. We compared the performance of servo motors and control system products disclosed on the company's website with Huichuan Technology's products and found that Lianyi Motor's servo motors and drive systems have reached first-class standards at home and abroad. Considering that the company's servo motors and systems began providing prototypes to foreign companies for long-term performance tests in 2014, we expect 2016 is likely to be the first year of the company's servo motor and system output. Apart from the fact that the core components of the robot are about to be released, the company is also taking the lead in laying out special robot bodies. The company has signed strategic cooperation agreements with the first-class robotics research institute of the Harbin Institute of Technology in China and the robotics company in Israel. Senior experts join to help the company build the next NEV powertrain supplier. Jin Yiyi, a senior expert in the “Thousand Talents Project”, is the chief engineer of Lianyi Electric. His research and design fields cover almost all core technologies in the field of electric vehicles. The future development goal of Lianyi Electric's new energy vehicle assembly system is to achieve intelligent vehicle control integrating motors, controllers, and transmissions. Recently, Lianyi Electric has successfully developed an automatic transmission for a medium power electric vehicle and submitted it to a third party authority for testing. Once the test is successful, Lianyi Electric will become the first domestic enterprise with independent intellectual property rights for fully automatic transmissions for new energy vehicles. According to estimates, in 2016-2020, the domestic NEV powertrain market space will reach 165 billion yuan, and the company is expected to share the feast of China's rapid growth in new energy vehicles in the future. New healthcare and eco-friendly leisure products are constantly being introduced, and the number of scooters for the elderly is growing rapidly. The company has a comprehensive layout of healthcare and environmentally friendly leisure products. The company gives full play to its advantages in the field of micromotors. Currently, it has become the only supplier of the world's highest-end electric wheelchair drive components in China, and has obtained US FDA certification. The elderly scooter product has become the company's first product to be released in recent years. In 2015, we expect the company to sell nearly 1,000 units of elderly scooters per month, mainly exported to Europe and the US. The retail price is 4000-7000 yuan/vehicle, and the gross margin is higher than 40%. The target price is 25 yuan, and there is room for a six-month increase of more than 50%. Coverage for the first time, giving it a “buy” rating. According to the neutral assumption, we expect that in 2016-2018, Taiyuan corundum will achieve net profit attributable to the parent company of 137 million yuan, 225 million yuan, and 400 million yuan respectively, and the corresponding earnings per share after full dilution are 0.24, 0.40 and 0.71 yuan. Referring to the average valuation of comparable companies in 2017, PE 50X, taking into account the synergy and high growth of the company's hot layout, we give the company a target price of 25 yuan for 6 months, corresponding to 2017 PE62.5X, coverage for the first time, giving “buy” Enter the “Enter” rating. Furthermore, considering that the company's intelligent logistics project will enter the production period in 2016, which may further increase the company's profits, there is still a possibility that future profit forecasts will increase.