The company is a leading enterprise in the IC distribution industry. The company is a leading authorized distributor of IC products in China. It mainly forms sales of IC products by providing customers with a series of technical support services, including IC application solutions. The IC products distributed are mainly communication connection chips and sensor chips. The company has been cooperating with world-renowned suppliers for a long time, mainly acting for products from well-known IC design and manufacturing companies such as Qualcomm Chuangxun, Xinsi, NXP, Sijiaxun, AVX/Kyocera, and Puss; and has high-quality downstream customers such as ZTE Kangxun, Gongjin Electronics, and DJI. Based on market demand, the company steadily develops and develops independent R&D solutions based on the supplier's existing chip platform, focusing on downstream needs, independently developing or cooperating with customers to complete IC application solutions. Up to now, the company has completed 172 IC application solutions, obtained a total of 5 patents, and 25 computer software copyrights, mainly in the fields of mobile communications and broadband access. The company has also won the title of ZTE Excellent Solution Provider and UT Skonda Excellent Product Provider many times. Raising capital to strengthen the company's core competitiveness The company plans to invest the capital raised in R&D projects for industrial control MCU and ARM embedded systems, development and promotion projects for key smartphone components, and large-scale expansion of existing product lines. The fund-raising project will expand the company's product range, enhance the company's technical strength, improve the company's customer service capabilities, and meet current market development needs. Investment advice The PE valuation of the software and information technology services industry in 2016 was 55.86 times. Considering that the company's main business is IC distribution, high technical barriers and service barriers, and scarcity in the market, we gave the company a valuation of 70 times in 2016. Based on a profit of 0.54 yuan per share in 2016, the stock price was 37.8 yuan, fluctuating 10% up and down, and the company's reasonable valuation range was 34.02 to 41.58 yuan. Risks suggest that the downstream consumer electronics market is weak; chip inventory is out of date; and changes in supplier and customer business conditions.