Brief description of the three-quarter report: Yi'an Technology released its three-quarter report, with operating income of 394 million yuan, an increase of 16.81% over the previous year; net profit attributable to listed companies was 37.69 million yuan, an increase of 23.3% over the previous year. Net cash flow from operating activities was 77.107 million yuan, an increase of 312.42% over the previous year; basic earnings per share of 0.17 yuan; and a weighted average return on net assets of 5.88%. Investment points: Deeply involved in the field of alloy materials, a two-pronged approach in the fields of consumer electronics and automobiles: the company is a high-tech enterprise specializing in R&D, design, production and sales of lightweight alloy precision die castings such as magnesium alloy and aluminum alloy. The company continues to explore the consumer electronics market, and its products have successfully entered the supply chains of many well-known domestic and foreign customers such as Huawei, Samsung, Witron, Heshuo, and Xiaomi. With the advantages of lightweight magnesium-aluminum alloy automotive products, the company has successfully cooperated with internationally renowned customers such as TKP, Tesla, HBA, TRW, AWE, and Alpine. The field of liquid metal has broad prospects, and the company's product technology is leading: As a new type of material, liquid metal has a series of advantages such as high strength, high hardness, friction resistance, high elasticity, and corrosion resistance. The company began developing liquid metal in 2010. Currently, it has a complete liquid metal industry chain and has mass-produced liquid metal products such as catheters and shafts. At the same time, the company is not only becoming more mature in molding small products, but also has production capacity for large molded products. We expect that as technology continues to mature, liquid metals will have a wide range of applications. Establish a joint venture with the Chinese Academy of Sciences to further consolidate the leading edge of liquid metals: in July 2015, the company plans to invest 126 million yuan to establish a joint venture with the Institute of Metals of the Chinese Academy of Sciences to establish Zhongke Yi'an Liquid Metals Co., Ltd., which holds 70% of Yi'an Technology. The Institute of Metals Research is an important base for materials science and engineering research in the country, and its research on the preparation of massive amorphous materials and their composites represents the highest level in the world. By cooperating with the Metal Research Institute, the company can accelerate the industrialization of the Metal Research Institute's technology and further consolidate the company's leading position, taking advantage of its liquid metal advantages. Grading the increase in holdings: It is estimated that in 2015-2017, the company will achieve operating income of 631, 788, and 999 million yuan, and net profit attributable to the parent company of 6529, 8143, and 10.3 million yuan, and EPS of 0.29, 0.36, and 0.45 yuan respectively. The current prices corresponding to 2015-2017 PE are 97, 77, and 62 times, respectively. In view of the broad market prospects of liquid metals, the company was given an increase in holdings rating. Risk Warning: Consumer Electronics Industry Sentiment Declines; Liquid Metal Sales Fall Short of Expectations