Key investment events: The company issued an announcement. The company signed a “contract” with Fuyang Economic and Technological Development Zone in Hangzhou City, Zhejiang Province, invested 150 million yuan to establish a piezoelectric inkjet printhead project, and invested 80 million yuan to establish a subsidiary, Hangzhou Aixinkai Technology Co., Ltd. The industrial inkjet print head project is online, and mass production of the new business is imminent. 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 has been developing industrial inkjet printheads for many years. Until now, it has been in the preparation and planning stage for large-scale production. It has been well evaluated in trials by foreign customers. At the same time, it has initially completed research and development of 3D printing equipment and T-shirt inkjet printers based on industrial inkjet print heads. This time, it is planned to invest 150 million yuan to invest in the construction of an industrial piezoelectric inkjet printhead project. After the project is put into operation, it is expected to produce 500 CTPs and 10,000 nozzles per year. During the “13th Five-Year Plan” period, the growth rate of digital printing exceeded 30%, driving rapid growth in the market volume of industrial inkjet printheads. In 2017, China's industrial inkjet print head market demand is expected to reach 4.8 billion yuan, which can be used in ceramic building materials, textile printing and dyeing, and electronics industries. During the “13th Five-Year Plan” period, the growth rate of China's digital printing industry will exceed 30%, which is expected to drive the rapid growth of industrial inkjet printheads. In 2020, China's industrial inkjet printhead market is expected to exceed 11 billion yuan. Inkjet printheads are completely monopolized abroad, and import substitution brings great upward flexibility. The technical barriers to industrial inkjet printheads are extremely high. Currently, domestic industrial inkjet printheads are monopolized by foreign companies. Major manufacturers include British Cyr and others. With the gradual implementation of the company's projects, the prospects for future import substitution are promising. Currently, the price of some industrial print heads abroad is around 20,000 yuan. If the company's printhead is priced at 10,000 yuan, project implementation will bring revenue of 100 million yuan, and gross margin is expected to reach 70%. Furthermore, the implementation of CTP production expansion will also bring about 200 million dollars in revenue space. According to the company's net profit margin at this stage, conservative estimates will bring a total of 60 million yuan of upward flexibility to the company's performance. Profit forecast and valuation: The company's industrial inkjet printheads are put into small-batch production, breaking foreign monopolies and achieving import substitution. Starting in 2018, it is expected that the company's net profit for 2017-2019 will be 0.54/1.1/182 million yuan, and EPS will be 0.67/1.37/2.28 yuan respectively, corresponding to PE 82x/40x/24x, maintaining the “increase in holdings” rating. Risk Warning: New Product Marketing Progress Is Lower Than Expected