Investment points: The era of voice interaction has arrived. Since Amazon launched the Echo in 2014, Internet technology giants such as JD, Ali, and Xiaomi have joined the smart speaker market competition one after another. According to data from Yiguan Qianfan, as of 2017-Q1, the number of active users in the smart home market in China has exceeded 46 million. As an entry point for voice interaction, smart speakers can perform functions such as weather inquiry, shopping, and home control, and are the core of smart home control. The company cooperated with companies such as JD, Ali, and BestBuy in the smart speaker field through ODM as the main and OBM as an aid, and quickly opened up the market. Tmall Genie's order for Double Eleven alone exceeded one million units. It is expected that next year, smart speakers will be the biggest driving force for the growth of the company's electroacoustic business. The acquisition of Fuchengda enters Apple's supply chain. The synergistic effect will gradually reflect the company's acquisition of Apple's metal structural parts supplier Fuchengda in 2016. Fuchengda mainly supplies internal structural parts such as brackets, cartons, and light covers to Apple, while the subsidiary Opunda mainly supplies metal exterior parts such as back covers and middle frames to customers such as Sony and VIVO. Both complement each other well in terms of customer and product structure, and are expected to share CNC machines and customer resources, and further increase market share and product categories. At the same time, after the deep integration of Opanda and Fuchengda, CNC processing capabilities have been greatly improved. In the future, it is expected to expand the business radius to fields such as smart homes and automotive electronics, opening up new growth space for the company. The traditional health appliance business is growing steadily. The company mainly supplies world-renowned beauty generator brands HOT, Sally Beauty, etc. in the ODM model. In the first half of the year, revenue increased 9.59% year-on-year, and growth was steady. Under the trend of consumption upgrades, the high-end US generator market is vast, with an average compound annual growth rate of more than 10%. The company has a high-end positioning, stable core customer resources, and is expected to maintain steady growth in the next two years. Profit forecast and investment rating: We are optimistic about the company's layout in the smart speaker field. We look forward to the company's advanced performance after deep integration between Fuchengda and Opanda. We expect the company's net profit for 17-19 to be 527 million, 814 million yuan, and 1,060 million yuan, corresponding to EPS of 0.36, 0.55, and 0.72 yuan per share, corresponding to EPS of 0.36, 0.55, and 0.72 yuan per share, corresponding to PE of 33, 21, and 16 times. Risk warning: 1) The integration of Fuchengda and Opunda fell short of expectations; 2) The development of the smart speaker market fell short of expectations; 3) The growth rate of the US generator market fell short of expectations.