Matters: The company released its 2017 three-quarter report. In the first three quarters, the company achieved operating income of 367 million yuan, an increase of 387.70% over the previous year, and the company's net profit attributable to shareholders of listed companies was 23 million yuan, an increase of 575.02% over the previous year. Key points 1. It also showed that COSCO Xiangrui greatly increased the company's performance, and the reduction in the three rates enhanced the company's profitability. In the first three quarters, the company achieved a 387.70% year-on-year increase in revenue. The main reason was the addition of new additions and changes in Yuanyang Xiangrui's sales revenue. Net profit attributable to shareholders of listed companies increased 575.02% year-on-year, and the growth rate was much higher than the revenue growth rate. The main reason is that the three-rate rate decreased by 15.4 percentage points, including the sales expenses rate decreased by 7 percentage points, the management fee ratio decreased by 11.8 percentage points, and the financial expenses ratio increased by 3.4 percentage points. The gross margin decreased by 1.5 percentage points, mainly because the company's gross margin for standard machines, non-standard machines, and special machines all declined. 2. Positioning high-end CNC wire winders are expected to benefit from the promotion of Apple's wireless charging CNC wire winders are one of the key devices in the development of the electronics industry. The demand for equipment from large multinational and local electronic component manufacturers is mainly for high-end products. Compared with price, they place more emphasis on refinement, efficiency (automation), and modular and customized (integrated) capabilities. The company relies on years of technology accumulation to develop the middle and high-end markets, achieve product refinement, efficiency, modularity and customization, and has gradually established a leading position in the industry with technical advantages. Furthermore, Apple introduced wireless charging technology for mobile phones this year, which will push other mobile phone brands to follow suit. Demand for coils for wireless mobile phone charging will drive demand for wire winders, and the company is expected to benefit greatly as a leading domestic automated wire winding equipment company. 3. Acquiring COSCO Xiang Rui, seizing the opportunity of the rapid development of 3C automation, the company acquired 55% of COSCO's shares in cash last year, and will acquire the remaining 45% of the shares in the second half of this year. It is expected to be consolidated this year. COSCO Xiangrui specializes in glass engraving machines and is in a leading position in the market. It has greatly benefited from the expansion of production by glass manufacturers under the trend of curved glass and 3D glass, and its performance has maintained rapid growth. Orders for the company's newly expanded metal CNC equipment are in strong demand and are in short supply, which is expected to be an important support for this year's results. At the same time, the new product hot bending machine has already met mass production requirements and sales have begun. Once downstream 3D glass breaks out, companies will be the first to benefit. 4. Profit forecast: The company is expected to have net profit of 47 million yuan, 194 million, and 242 million yuan for the 2017-19 exam. The corresponding EPS is 0.66 yuan, 2.76 yuan, and 3.43 yuan, and the corresponding PE is 122X, 29X, and 23X, maintaining the recommended rating. 5. Risk Warning: New business integration falls short of expectations