Event: The company released its report for the third quarter of 2017. During the reporting period, the company achieved operating income of 904 million yuan, an increase of 130.79% over the previous year; net profit attributable to shareholders of listed companies was 143 million yuan, an increase of 265.65%; and EPS of 0.75 yuan. Opinion: Performance exceeded expectations, and high industry prosperity supported a sharp increase in annual performance. The company's single-quarter revenue for the third quarter was 361 million yuan, slightly lower than the second quarter's 367 million yuan. Net profit for the single quarter was 60.85 million, higher than 6.06 million in the second quarter, and profitability increased. In 2017, the lithium battery, PCB, LCD module and LED industries all continued to improve. Benefiting from the high prosperity of these industries, the company's annual performance will maintain a state of significant growth. The main business is stable, and the performance of various wholly-owned subsidiaries is clearly increasing. The company's traditional PCB business is PCB precision processing and testing equipment and PCB precision processing auxiliary materials. The company has deep accumulation, continuous improvement in technology, and steady business. Coupled with the overall recovery of the global PCB industry in 2017, the company seized the opportunity, and the traditional PCB business grew significantly. Jiyin Technology, which the company acquired in 2015, is an excellent enterprise that produces LCD module automation equipment. It has excellent customer resources. Key customers include JDI, Bourne Optics and other companies. Jiyin Technology develops and produces hot press laminating equipment for LCD module series, backlight equipment series, camera equipment series, etc. This equipment is at the leading level in the industry, and there is broad demand space for laminating equipment in the panel industry development, which will continue to drive the company's performance growth. Xuanshuo Intelligent Manufacturing focuses on industrial automation and intelligence. Its main business products are to provide packaging equipment for the LED industry. It has high-quality customers such as Samsung, LG, Furi Lighting, and Hongli Optoelectronics. At the same time, the development of its main products is stable and guaranteed. At the same time, Xuanshuo Intelligent Manufacturing is actively developing new markets, establishing a lithium battery automation division, and preparing to enter the fields of lithium battery PACK automatic assembly and polar ear laser cutting equipment. In addition, the subsidiary Peng Yuwei has some industry influence in the field of welding in the compressor and elevator industry, and future product prospects for automated production lines based on welding technology are promising. Continuously increasing the number of intelligent equipment manufacturing and functional film material projects for FPCs, the company plans to raise about 927 million yuan through a non-public offering of no more than 39.42 million shares, mainly for the construction of intelligent equipment manufacturing center projects and functional film materials and technological transformation projects for FPCs. The intelligent equipment manufacturing center project can further accelerate the company's technological progress in LCD module equipment, lithium battery new energy equipment, and Peng Yuwei's automated production line equipment, and enhance the company's market competitiveness. Investment recommendations and ratings: We expect the company's 2017-2019 operating income to be 1.44 billion yuan, 2.34 billion yuan and 3.4 billion yuan respectively, net profit of 207 million yuan, 385 million yuan and 616 million yuan respectively, EPS of 1.05 yuan, 1.95 yuan and 3.13 yuan, corresponding PE of 35X, 19X and 12X respectively, maintaining the “highly recommended” rating. Risk warning: The recovery of the PCB industry fell short of expectations, and the development of new business fell short of expectations.