Key investment points: Performance continues to grow, and multiple factors drive a new era of rapid performance growth: the company is a leading domestic provider of new smart hardware and integrated solutions. Its products cover four major series of metal parts: electroacoustic products, health appliances, smart wearables, and mobile smart terminals. In the first three quarters of 2017, driven by continued growth in various businesses, the company achieved operating income of 1,794 million yuan, an increase of 29.44% over the previous year; net profit to mother was 278 million yuan, an increase of 15.65% over the previous year. Considering the strengthening of the growth trend of the company's electroacoustic business, the horizontal expansion of health products, and the significant synergy between Fushengda and Opunda, the company's 2017-2019 performance is expected to maintain a compound growth rate of more than 35%. Welcome the wave of the “voice communication cloud” era and ride the wave of smart speakers by storm: with the gradual launch of new smart speaker products from international giants, and domestic cloud networking technology giants such as JD, Ali, and Xiaomi vigorously expanding the domestic market, global smart speaker sales could exceed 10 million units in 2017, and within the next 5 years, their output value will reach close to 10 billion US dollars. Following the trend of industry development, the company cooperated with JD (exclusive), Ali (with cumulative sales of more than 1 million units in “Double Eleven”), and BestBuy and signed a 300 million yuan smart speaker order. Shipment will begin at the end of the 3rd and 4th quarter of this year. At the same time, the company uses ODM and OBM two-wheel drive development models (mainly ODM, accounting for more than 85%). Compared with the OEM model, it has higher profitability. At the same time, it is not affected by the slow development of OBM ceiling utility and insufficient competitiveness, and the company's competitive advantage is obvious. Epitaxial is improving the precision manufacturing layout, and there are still future mergers and acquisitions: the company's merger and acquisition of Oppenda in 2014 included metal exterior parts in the business layout, and further acquired Apple parts supplier Fuchengda in 2016. On the one hand, Opunda mainly sells exterior parts such as cases, middle frames, and buttons, and Fushengda mainly sells internal structural parts such as brackets, trays, and lamp covers. The two work together to repair both internal and external metal parts of smart terminals, share customer resources, and further increase the variety and share of products for customers. On the other hand, Fuchengda is a stable supplier of Apple's precision structural parts. This year, it undertook more than 100 parts from Apple. Compared with last year's project number, the unit price of the added double camera stand and other parts reached 1.5 US dollars, which will significantly increase the stand-alone value of the company's products. In the future, with the popularity of Iphone X, customer A customer orders will gradually turn into the company's performance, bringing strong profit growth points. At the same time, we expect that the company still has expectations of integration in the structural parts industry chain. Investment advice: The company started with multimedia speakers and entered the smart speaker market in line with the wave of intelligent development. Successive acquisitions of Opunda and Fuchengda have improved the precision manufacturing layout and created a new profit growth pole. The company's revenue for 2017-2019 is estimated to be 28.87/44.45/5.684 billion yuan, respectively, and net profit to mother is 5.35/8.72/10.53 billion yuan, respectively. The corresponding EPS is 0.36/0.59/0.71 yuan, respectively. The corresponding PE is 32/20/16 times, covering the first time, giving the company a “recommended” rating. Risk warning: the risk that the growth rate of the metal exterior parts business will slow down, the risk that smart speaker orders will fall short of expectations, and the risk of integration falling short of expectations.