The mobile communications industry benefiting from China's rapid growth — the root cause “12? According to the “Five Plans”, China's 3G users will reach about 700 million by the end of 2015, while the number of 3G users in China was only 289 million by the end of April 2013. In addition to the increase in the number of 3G users and mobile terminals in China, various applications with rich functions, such as Internet TV and online games, have been put on the market one after another. Mobile communication networks must be faster and have more capacity to meet the demand for transmitting large amounts of data in the information age. At the same time, although the 4G license has not yet been officially issued, China Mobile has taken the lead in launching a 4G plan. It can be predicted that a new wave of 4G network construction is coming soon. All of these developments will stimulate demand for cable products produced by Junzhi. Market leader — In 2012, Junzhi accounted for 28% of the market share of the RF coaxial cable market in China, while the other three large enterprises together accounted for 40% of the market share. Last year, the Group's registered trademark “Junzhi Technology TRIGIANT” was rated as a “famous trademark in China”. Furthermore, in the centralized procurement tenders of the three major telecommunications operators in China, Junzhi won first place in the overall evaluation results. These all reflect the core competitiveness of smart knowledge in terms of product quality, rich product mix, sales services, and scale effects, etc., and are a good foundation for the group to gain greater market share in the future. Valuation and Proposals — As China continues to invest and upgrade 2G and 3G networks, and the start of the 4G investment cycle, we conservatively estimate that Junzhi's operating volume and net profit from 2012 to 2015 will record a compound annual increase of over 20%. Junzhi's current stock price is equivalent to a historical price-earnings ratio of 8.4 times. Based on the target price-earnings ratio of 8.4 times and our earnings per share forecast for Junzhi in 2013 at RMB 0.33, we set a target price of HK$3.50 per share for Junzhi, which means an upward space of 24.4%, so we are introducing Junzhi for the first time and are proposing a purchase.