Incident: The company issued an announcement to change the company name from “Fujian Haiyuan Automation Machinery Co., Ltd.” to “Fujian Haiyuan Composite Materials Technology Co., Ltd.” and the stock abbreviation from “Haiyuan Machinery” to “Haiyuan Composites”. Comment: Changing the name means changing the name, and the main business is shifting to composite materials. The company changed its name to “Haiyuan Composites”, indicating that the company's main business has changed from R&D, production and sales of a single hydroforming equipment to the field of lightweight composite materials. According to the 2016 audit report, the company achieved revenue of 202 million yuan, of which the composite lightweight products business achieved revenue of 122 million yuan, accounting for 59.64% of the company's revenue in 2016. Lightweight composite products for automobiles and lightweight construction have become the main source of the company's performance. Relying on the accumulation of leading equipment and technology, pioneering lightweight composite materials has entered the harvest period. The company is a domestic supplier of mechatronic and hydraulic integrated equipment and lightweight composite products, and is one of the suppliers of hydraulic molding technology and equipment with the largest product category in the world. Relying on the accumulation of relevant technology, the company has seized opportunities for lightweight automobiles and buildings, entered the field of lightweight composites, and gradually entered the harvest period. According to the company's performance report, in 2017, operating income was 275 million yuan, up 33.84% year on year; net profit was 0.7 billion yuan, up 119.07% year on year. Among them, revenue for the fourth quarter was 41 million yuan, up 86.36% year on year; net profit was -225 million yuan, up 34.21% year on year. The increase in performance was mainly due to rapid growth in the lightweight composites sector. With continuous harvesting of instructions to open models, performance growth is expected to accelerate. At the beginning of the year, the company continuously announced the opening or mass production instructions for Geely New Energy's MPC-1 project, Ningde Shidai New Energy Materials Company, and Ultuo (Shenyang) Soundproof Parts Company's bottom protection board project, marking that the company is one step closer to receiving batch orders. The company is gradually gaining a foothold in the automotive lightweight field, and performance growth is expected to accelerate. Actively seek strategic cooperation and expand the international market. According to the announcement, the company and Geely New Energy signed a strategic cooperation agreement on comprehensive cooperation in the field of automotive lightweighting, established a comprehensive strategic partnership in technological innovation and product development, and carried out strategic cooperation in the field of automobile lightweighting. The company plans to invest in a new auto parts production base to reduce Geely New Energy's supporting procurement costs, and at the same time help the company expand sales channels and ultimately achieve win-win cooperation. In addition, the company signed a strategic cooperation agreement with Germany's SGL on the development and production technology of carbon fiber components, etc., with the aim of integrating the superior resources of both parties, achieving strong alliances in the fields of carbon fiber composites and automotive lightweighting, consolidating the company's leading position in R&D technology, and further expanding the Chinese market. Investment suggestions: The company has been deploying the lightweight automobile and construction markets for many years and has begun to gradually enter the harvest period. Orders are expected to grow rapidly, and rapid growth can be expected. The company's revenue from 2017 to 2019 is estimated to be 275 million yuan, 647 million yuan, 1,558 million yuan, and net profit of 0.7 million yuan, 70 million yuan, and 249 million yuan respectively, maintaining a buy-A investment rating. The six-month target price is 21.06 yuan, which is equivalent to a dynamic price-earnings ratio of 78 times in 2018. Risk warning: Composite materials market development falls short of expectations, and industry growth falls short of expectations.