Key investment events: On July 12, the company released the 2017 semi-annual performance forecast. Net profit attributable to shareholders of listed companies is expected to be 1823.13-206093 million yuan from January to June 2017, an increase of 15-30% over the previous year. Traditional businesses are operating in a stable manner and have achieved steady growth in performance. The company is mainly engaged in R&D, production and sales of industrial printing products, and is committed to providing solutions and complete equipment products in the field of industrial printing technology applications. The company's traditional products include offset CTP and flexographic CTP. It is the CTP manufacturer with the most complete product line in China, with a domestic market share of about 20%. The company's traditional business operations are stable, achieving steady growth in performance. The business structure continues to be optimized, and the proportion of new flexographic machines continues to increase. Flexographic CTP is the company's second industrial application product for laser printing technology, and was introduced to the market at the end of 2013. Official sales were achieved in 2014. The company has now become one of the earliest flexographic CTP brand manufacturers in China. The introduction of flexographic CTP is conducive to achieving deep coverage of the company's laser printing technology in the printing industry, and further gradually expanding from printing fields such as books, magazines, newspapers, and brochures to packaging printing and label printing fields such as paper packaging, plastic packaging, and metal packaging. Flexographic presses account for close to 20% of revenue. We judge that with the advancement of the marketing of new products, flexographic CTP, and industrial inkjet printheads, it is expected to lead the company into a new stage of rapid development. Industrial inkjet printheads are expected to be produced in small batches in the second half of the year, and the prospects for import substitution are promising. The company's industrial inkjet print head products have entered the preparation and planning stage for large-scale production, and has initially completed research and development of 3D printing equipment and T-shirt inkjet printers based on industrial inkjet print heads. It is expected that small-batch production will be achieved in the second half of this year. China's printhead market demand is close to 10 billion. Currently, domestic industrial inkjet printheads are monopolized by foreign companies, and the prospects for future import substitution are promising. Profit forecast and valuation: The company will achieve small-batch production of industrial inkjet printheads in the second half of the year, break foreign monopolies and achieve import substitution. Starting in 2018, it is expected that the company's 2017-2019 EPS will be 0.67/1.37/2.28 yuan, corresponding to PE 63x/31x/18x, respectively, and maintain the “increase in holdings” rating. Risk warning: New product marketing progress is falling short of expectations.