Event: Tony Electronics released its 2017 annual report, achieving annual revenue of 726 million yuan, an increase of 119% over the previous year, and net profit of 173 million yuan, an increase of 173% over the previous year, in line with market expectations. The rapid growth of the diamond wire business has greatly improved the company's performance. In 2017, Tony Electronics achieved revenue of 726 million yuan, a year-on-year increase of 119%, net profit of 173 million yuan, a year-on-year increase of 173%, and gross margin of 41.46%, an increase of 1.27% over the same period last year. The main reason for the increase in the company's performance is the rapid growth of the King Kong wire business (King Kong wire achieved annual revenue of 356 million, yoy is 317%). In 2017, the gold steel wire business accounted for 49% of revenue and more than 50% of profit. The increase in production capacity at the same time brought about a rapid decline in costs. The company's gross margin increased 9.13% over last year, reaching 56.21%. In addition, the company's wireless induction coil and laminated wire business revenue in 2017 was $121 million and $500 million, with year-on-year growth rates of 238.78% and 68.65% respectively. Continue to be optimistic about the continued explosion of the company's King Kong wire business, and focus on the wireless coil and battery pole ear business. According to research on the diamond wire industry chain, we expect the market price of diamond wire to slow down from the price reduction trend in '17. Driven by demand, we expect the company's diamond wire business to continue to more than double in 2018, and we continue to be optimistic about the upward elasticity of the company's performance brought about by the diamond wire business. Furthermore, the catalytic development of the superimposed wireless coil and battery pole ear business in 2018 is expected to increase the upward elasticity of the company's performance curve. Maintain the “Highly Recommended” rating: The company's 2018-2020 operating income is estimated to be 14.10/18.41/2253 billion yuan, net profit is 350/4.76/585 billion yuan, and corresponding EPS is 3.44/4.66/5.73 yuan respectively, maintaining the “highly recommended” rating. Catalysts: The expansion of diamond wire production capacity is accelerating; wireless induction coils have entered the world's major mobile phone supply chains; and the market development of ultra-fine metal wires and battery terminals has accelerated. Risk warning: Competition in the diamond wire industry is intensifying; the progress of diamond wire demand is lower than expected, etc.