A leading provider of automation solutions for molding machines from Taiwan. At present, the company's products mainly include plastic machine control systems, servo energy saving systems and related embedded software and plastic machine network management systems. Among them, molding machine control systems account for nearly 50% of the market, leading the industry. Xiong Yulin and Zhou Shanshan are the actual controllers of the company, holding a total of 60.32% of the company's shares. High-end automation solutions for molding machines guarantee performance growth. Currently, domestic injection molding machines are mainly hydraulic, and all-electric injection molding machines are mainly imported, and there is plenty of room for equipment upgrades. High-end injection molding machines will increase demand for high value-added parts. In addition, the company is currently promoting a full set of molding machine automation solutions, that is, in addition to providing injection molding machine control systems and servo energy saving systems, other core components, such as sensors, etc. are packaged and sold according to the specific needs of customers. Improve software and hardware products to build a smart factory for molding machines. Currently, the company's own products mainly include injection molding machine control systems and servo energy-saving systems (including servo drives, oil pumps, servo motors, etc.). Furthermore, the company has invested in establishing a wholly-owned subsidiary, Yi Xuesong, in Shunde, Guangdong, with industrial robots as the main product direction, and is expected to achieve sales revenue next year. We judge that in the future, the company will not rule out continuing to improve and strengthen existing hardware products or fill gaps in other hardware products. In addition, the company has set up a team of more than 30 people to develop software information products such as cloud computing and big data, and actively reserve technology for the Industry 4.0 era. Investment advice: We expect the company's main business revenue in 2015-2017 to be 384 million, 470 million and 541 million, respectively, up -16.00%, 22.42% and 15.00% year-on-year; 2015-2017 net profit to mother will be 82 million, 100 million and 117 million yuan, respectively, and EPS of 0.41 yuan, 0.50 yuan and 0.59 yuan, respectively. We are optimistic about the improvement of the company's 4.0 layout and performance improvement in the molding machine industry. The target price is 40 yuan, corresponding to 80 times the P/E in 2016, and the “increase” rating. Risk warning: Demand for molding machines has declined sharply, putting pressure on the company's performance; the implementation of the company's strategy fell short of expectations, putting pressure on valuation.