The predicted profit fell 19%-15% year on year. Dirhanyu announced the 2017 performance forecast: 2017 profit of 155.1684 million yuan to 162,831 million yuan, a year-on-year decline of 19%-15%. Key points of focus: Dirhanyu's 2017 Q4 performance fell short of expectations. The company's net profit attributable to the parent company in Q1/Q2/Q3 was -16.8%, -1.9%, and -24.8%, respectively, and 2017Q4 fell 19%-41%. Exchange risk: The company's export revenue accounts for more than 70%, is greatly affected by the appreciation of RMB against the US dollar, and is exposed to exchange risks. In January 2018, the RMB appreciated 3% against the US dollar, which is expected to lead to a decrease in gross margin during export business settlement, affecting profitability. Furthermore, the account period and foreign currency assets will cause the company to lose exchange. The pressure on the industrial chain was high in 2018: the cost of raw materials has risen rapidly since 2017, and the home appliance industry chain is facing greater cost pressure. Dierhanyu promotes exclusive aluminum-copper drainage pumps. The overall gross margin and net profit margin are too high among accessories companies, and they are easily pressured by customers to lower prices. The company has a rich layout of new products and industries, but it has not yet grown into a large-scale business. The company is also developing new energy vehicle accessories, such as wireless charging stations, etc., and R&D investment costs have also increased. The valuation and recommendations were lowered by 13% and 17% of EPS in 2017 and 2018. EPS is expected to be 0.47, 0.52, and 0.60 yuan in 2017, 2018, and 2019. Currently, the company's stock price corresponds to 31x 2017e P/E. We maintained a neutral rating and lowered our target price by 17% to our target price of RMB 14.23. Demand fluctuates in risk markets.