According to the report, today's GEM index fell 2.18% to a new low in nearly three months, with a cumulative decline of 8.74% since the highest point on October 13; the company's stock price fell 9.97% today, and there is still a 3.54% increase since October 13. We continue to be optimistic about the company's future transformation and growth, and the decline gave us the best time to open positions. Key investment points The Internet of Things megatrends will facilitate the rapid transformation and development of the company. We believe that the company's transformation from a leader in segmented manufacturing to an IoT enterprise is in line with industry trends. The company's platform-based IoT products have both technical barriers and can accommodate access to a wide range of smart home terminals, complemented by cloud-to-end connectivity and smart display terminals, enabling the company to follow the opportunities of the Internet of Things wave and take a seat with its own unique architecture. The asset-light photovoltaic business provides performance to help grow the company's ability to further expand the transformation effect of the team's ability to take orders for PV projects by leasing high-quality production capacity in the contracting industry. In the upward boom cycle of the photovoltaic industry, it has made flexible use of its advantages, and has not added a large amount of fixed assets. The net profit corresponding to on-hand orders is expected to bring the company an increase of 50% to 100%. Apple's changes bring cyclical opportunities to the company. Apple's changes in 8 and X, as a leader in consumer electronics, have brought new demand to the market, and demand for upgrades of testing equipment also on production lines will rapidly expand. The company's subsidiary Maizhiji is expected to receive a 50% year-on-year order growth rate next year, helping the company's overall performance increase. Profit forecast and valuation We expect that in 2017-2019, the company will achieve revenue of 3.452 billion, 5.609 billion, 6.781 billion, net profit of 73 million, 160 million, 233 million, EPS 0.09 yuan, 0.19 yuan, and 0.28 yuan, corresponding PE of 126 times, 58 times, 40 times, and a CAGR of 82.75%. We believe that the company is at an inflection point in development and will be able to perform at a high growth rate in the future, giving it an “increase in wealth” rating. Risks suggest that orders for testing jigs are lower than expected, PV supply progress is lower than expected, and sales of cloud products are lower than expected.