From small household appliances to LEDs, the business structure was greatly upgraded. Dehaorunda entered the LED industry in 2009 and quickly completed the industrial layout through acquisitions and additional distribution. The company has a complete industrial chain including LED epitaxial chips, packaging, lighting, and displays. At the same time, it has the most valuable lighting channel resources by continuously increasing its holdings in Regis Lighting. As a result, after 5 years of continuous investment and technology research and development, Dehao Runda has transformed and upgraded from a traditional small home appliance manufacturer to a leading LED company, and its business model is comparable to that of Philips, a leading global lighting company. LED chips are starting to gain strength, and flip technology is leading. Against the backdrop of the explosion in demand for LED lighting, the company's chip products are facing good industry opportunities. After 2-3 years of research and development, the company's chip business has gradually stabilized. Among them, high-brightness, high-power flip chips will be the focus of the company's future development. As product quality improves and customer recognition increases, the company will gradually expand production capacity and strive to be full within the year, and revenue and profitability will increase dramatically. The relationship with Rexroth has been straightened out, and the future of LED lighting is bright. Dehaorunda Holdings holds 27% of the shares in Rexroth Lighting. Rexroth's lighting channel strength is the highest in the country. The strategy for focusing on LED development is clear, and the proportion of LED lamps is rapidly increasing. Among them, Dehao's light source products will be used extensively. As the interests of both parties are deeply bound, the integrated advantages of Dehao Runda and Rexroth Lighting will become more and more prominent. The company ushered in an inflection point in performance. With the gradual completion of targeted sales, the company's financial situation will be greatly improved; with breakthroughs in LED chips, capacity utilization and profitability will continue to improve, and performance flexibility will be high; the LED lighting business will show explosive growth, and the company has already ushered in an inflection point in performance. We expect the company's 2014-2016 EPS to be 0.27, 0.48, and 0.66 yuan respectively. The PE corresponding to the current stock price is 29.97, 16.93, and 12.32 times, respectively, giving the company a “recommended” rating and recommending buying or increasing holdings.