Event: For the first time, Junzhi Group (1300.HK) was covered, with a “buy” rating and a target price of HK$4.4. The company is a leading enterprise in the domestic RF coaxial cable industry, and will directly benefit from the arrival of the operator's 4G investment cycle in the future. The largest domestic RF coaxial cable manufacturer has leading production capacity: it has ranked first in RF coaxial cable sales for three consecutive years. At the end of 2012, RF coaxial cable production capacity reached 180,000 kilometers (capacity utilization rate was 82%), and production capacity is expected to expand to 300,000 kilometers by the end of '14. Industry-leading production technology: The company has advanced production technology, and the foaming rate of cable insulation is as high as 84% (the foaming rate of similar products is about 76-78%), which can effectively reduce signal attenuation. As a result, the company's product gross profit margin and ASP are higher than those of its peers. Furthermore, the company uses a cost plus profit pricing model (~ 75% of the cost is copper-related raw materials) to effectively pass on the risk of copper price fluctuations to customers and guarantee gross profit margins. Driven by the peak of domestic 4G investment and stable indoor coverage demand, demand for RF coaxial cables is expected to be strong in 2013-15: with the implementation of licensing, operators' 4G investment will accelerate in the second half of the year, and orders from RF coaxial cables are expected to exceed expectations. According to our estimates, domestic demand for RF coaxial cables will increase by about 22% in 2013-15 over the next three years. Establish long-term business partnerships with the three major operators: The company's product quality and production capacity are ahead of its peers, so it ranks first in operator procurement and bidding evaluations, and is already the largest supplier of RF coaxial cables for the three major operators. In 12 years, the company accounted for about 25% of the domestic RF coaxial cable market. Among them, China Mobile is the company's largest customer, contributing more than 50% of revenue; it is expected that China Mobile's active 4G investment in the second half of the year will boost the company's performance growth. The first coverage gave a “buy” rating: the 13-15 profit forecast is about RMB 0.34/0.4 2/0.4 8, with a compound increase of about 22% over three years. Based on the DCF model, the target price is HK$4.4, about 10.3 times 13-year PE. Give it a buy rating. 4G licensing will raise market sentiment about the equipment sector, while the acceleration of 4G capital expenditure is expected to result in the company's performance exceeding expectations in the second half of the year.