Investment Highlights The company released its report for the third quarter of 2017: the company achieved operating income of 904 million yuan in the first three quarters of 2017, an increase of 130.79% over the previous year; realized net profit of 143 million yuan, an increase of 265.65% over the previous year. Revenue for the single quarter increased by nearly 126% year on year, and net profit increased by nearly 220% year on year. The company's revenue for the single quarter of 2017 was 361 million yuan, up 125.78% year on year, and net profit to mother was 608.53 million yuan, up 219.57% year on year. On a month-on-month basis, revenue and profit remained flat, while revenue profit for the third quarter of previous years decreased by 10-30% compared to the second quarter (excluding the May 2016 consolidation situation). It can be seen that the company's product business situation continues to show a rapid upward trend. The gross margin reached 38.70% in the first three quarters, the highest level in history; the expense ratio dropped sharply by 9.87pctpct. The company achieved a comprehensive gross profit margin of 38.70% in the first three quarters, an increase of 0.41 pct over the same period last year; of these, the gross margin for the third quarter was as high as 40.20%, up 1.81 pct year on year, and 2.36 pct. The cost rate dropped sharply by 9.87 pct, of which the management fee rate decreased by 8.71 pct, indicating that the company's product R&D and management collaboration have all entered the harvest period. Lithium battery X-ray inspection equipment is oligopolistic, and LCD module equipment is benefiting from the wave of OLED investment. Currently, the company's market share in the field of lithium battery X-ray inspection in China is about 70%. Benefiting from the rapid development of the lithium battery industry and the continuous increase in the testing equipment configuration ratio, the company's precision processing and testing equipment will continue to grow at a high rate. The panel industry is rapidly being updated, and OLED investment is booming. The company's main end customers are international first-tier brands such as JDI, Sharp, and Omron. The customer resource advantages are remarkable, and the LCD module business is expected to maintain high growth. Profit forecast and valuation: The company's X-ray inspection equipment is in high demand, and LCD module equipment has huge potential for growth. We expect the company's EPS to be 1.20 yuan, 1.69 yuan, and 2.27 yuan respectively in 17-19, maintaining a “buy” rating. Risk warning: The development of the lithium battery market falls short of expectations, and OLED investment falls short of expectations.