Key investment points: Runxin Technology plans to issue no more than 30 million shares through an IPO, raising about 206 million yuan. Runxin Technology plans to issue no more than 30 million shares, a total share capital of no more than 120 million shares after issuance, and raise capital of 206 million yuan. The actual controllers of the company are Lang Xiaogang and Ge Qiong, and the controlling shareholder is Runxin Information. IC distribution industry leader. 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. Currently, it mainly distributes IC products from world-famous IC design and manufacturing companies such as Qualcomm Chuangrui, Xinsi, NXP, Sijiaxun, AVX/Kyocera, and ?$#@$, and has customers such as ZTE Kangxun, Gongjin Electronics, and DJI, which is an important link between upstream and downstream in the IC industry chain. Market demand is strong, and the company's performance is flexible. The boom in the IC industry is driving the development of the IC distribution industry, and the four major market segments, including mobile communications, broadband access, consumer electronics, and industrial control, are expected to explode demand in the future. The industry's barriers are high, which greatly contributes to future development. The four major barriers of technical support capacity, professional talent, capital scale, and IC design manufacturer authorization are conducive to maintaining the leading position of enterprises. The three major future developments help industrial policy support, downstream industry development, and rapid development of the domestic IC industry help promote enterprise development. Fund-raising projects help companies take off. The capital raised by the company plans to invest in industrial control MCU and ARM embedded systems research and development projects, smartphone key component development and promotion projects, and existing product line scale expansion projects to expand the company's product coverage, enhance profitability, enhance competitiveness in the field of industrial control, and adapt to the development of downstream market demand. First coverage coverage gives a buying rating. We expect operating income for 2015-2017 to be 1,185 million, 1,558 million, and 1,922 million yuan, and net profit of 46 million, 66 million, and 80 million yuan, respectively, and 0.38 yuan, 0.55 yuan, and 0.67 yuan of diluted EPS after the corresponding increase in issuance. Considering that the domestic integrated circuit industry will usher in a decade of golden development, the IC distribution field where the company is located has huge opportunities for development. At the same time, the company also has a core competitive advantage within the industry, so it has been given a buying rating for the first time. Risk warning: The progress of fund-raising projects is lower than expected, and demand growth in downstream markets is lower than expected