Report guide: Excellent management ability is the key investment point of anti-industry cycles. 2013 performance fell short of expectations. In 2013, the company achieved operating income of 429 million yuan, a year-on-year decline of 11.23%, net profit of -14,9228,700 yuan, a year-on-year decrease of -2044.53%, and a large decline in company performance. The main reasons were: 1. Influenced by competition in the terminal product market, product prices and product profitability declined, and gross margin of some major projects was negative; 2. Market development did not meet expectations, and capacity utilization was insufficient; 3. Preparation for inventory impairment As a result, net profit declined; 4. Operating expenses of holding subsidiaries affected net profit. Losses in the first quarter narrowed, improving markedly. The company expects to lose 5 to 10 million yuan in the first quarter. The main reason for the loss is insufficient capacity utilization and falling product prices around the Spring Festival, which affects profitability. Furthermore, the new accounting estimate affects 8.5 million, and non-recurring profit and loss affects 3.5 million yuan. Star Technology lost 30.82 million yuan in the first quarter of 2013. Excluding the merger impact of Shenyue Optoelectronics and the impact of non-recurring profits and losses, we believe that the losses of Star Technology's headquarters have narrowed, and the coordination effect is gradually showing. Results for the second quarter are expected to improve markedly. We believe that after the restructuring, the company's management system for the first quarter will begin to be adjusted, and it is expected that it will gradually become effective starting in the second quarter. Therefore, we judge that the company's performance in the second quarter will improve markedly, turn a loss into a profit, and at least fulfill its performance promise throughout the year. The automotive electronics business is the company's new growth point. The automotive Internet officially emerged in 2014. Shenyue Optoelectronics has been cultivating the automotive electronics market and is a resistance screen supplier for well-known international and domestic automobile manufacturers. With the development of the automotive Internet, the company develops capacitive screens for automobiles, using capacitive screens as carriers, and is actively developing the automotive Internet industry. We believe that the company and existing car manufacturer customers jointly develop automotive Internet products, which has a first-mover advantage, and automotive electronics will become the company's new growth engine. Profit forecasts and valuation estimates that the company's operating income for 2014-2015 was 19.2, 27.45, and 3.645 billion yuan, respectively, with year-on-year growth rates of 343.09%, 44.32%, 32.79%, and net profit of 149, 122, and 183.5 million yuan, EPS 0.54, 0.81, 1.01, and PE29, 19, and 15 times. We believe that the traditional touch screen business is growing steadily through the introduction of new customers and increasing market share, and that the automotive electronics business is the next growth engine. As an automotive electronics company with scarce A-shares, the automotive electronics business will raise the company's valuation level and maintain investment suggestions for purchases.