Key investment events: On the evening of October 19, the company announced that it plans to raise no more than 927 million yuan in capital from no more than 5 specific targets to invest in intelligent equipment manufacturing centers, etc. A fixed increase of 927 million dollars will accelerate the expansion of production capacity and technology for intelligent manufacturing and functional membrane materials. The company plans to issue no more than 39.42 million shares and raise 927 million for projects such as intelligent equipment manufacturing centers (36%) and expansion of production of functional film materials for FPC (20%). Among them, the main smart equipment projects accelerate the expansion of production capacity in the three major businesses of high-end LCD, lithium battery manufacturing, and elevator manufacturing represented by OLED. Among them, OLED high-end displays and lithium batteries are relatively determined booming industries in the next three years. The company mainly involves production & assembly & testing. Downstream customers such as Xinli, Tianma, Deputt, Bonne Optoelectronics, Lansi, Jingdong, etc. Demand for JDI, ATL, CATL, BYD, etc. is strong. The company's current layout will vigorously ease production capacity bottlenecks. After the project is put into operation, it is expected to achieve average annual sales revenue of 608 million yuan and net profit of 126 million yuan. In addition, functional film materials for FPC are mainly based on covering films and release films to supplement functional films such as covering films, battery shielding films, glued single/double-sided substrates, and non-adhesive double-sided substrates to meet the requirements of PCB customers for one-stop procurement of equipment and materials, and is expected to achieve an average sales revenue of 380 million yuan and a net profit of 4,274 yuan. Epitaxial's acquisition of Jiukun Information enhances intelligent manufacturing collaboration: the company has developed through two paths of endogenesis and epitaxial merger and acquisition in recent years. The company's acquisition of 80% of Shenzhen Jiukun Information's shares continues to increase industrial intelligent manufacturing: Jiukun Information mainly provides customers with overall intelligent manufacturing solutions based on IoT technology, such as Hongtu Technology, Yilisheng Technology, Haopeng International (HPJ), Lu Chang Technology, and other listed companies or enterprises. After the acquisition, the company will make full use of Jiukun Information Intelligent Manufacturing Solution Technology from the company to the next level. Subsidiary companies solve information silos in various aspects such as raw materials, production, warehouses, sales, and after-sales, and establish a closed-loop intelligent manufacturing system for the entire industry chain. We expect Jiukun Information to bring rapid improvements in intelligent manufacturing informatization to the headquarters PCB equipment, lithium battery X-ray equipment, and companies such as Yupengwei Technology, Xuanshuo Intelligent Manufacturing, and Jiyin Technology, etc., and Jiukun Information promises a performance of 6/9/12/15 million over the next four years to strongly increase the company's future profitability. Profit forecast: Considering the company's peak season in the second half of the year and the synergy and prosperity of the company's layout industry, we maintain our forecast revenue of 16.45/25.38 billion yuan, and net profit of 2.36 billion yuan and 431 million yuan. Without considering fixed growth and dilution, the estimated EPS is 1.20/2.18. Referring to comparable company valuations and the company's own customer advantages and intelligent manufacturing increases, the target price remains unchanged at 54.00 yuan, corresponding to PE in 2018. Risk warning: industrial integration falls short of expectations; risk of impairment of goodwill; downstream demand falls short of expectations