Incident March 31 The company released its 2017 annual report. In 2017, the company achieved a total operating income of 773 million yuan, an increase of 18.10% over the previous year; a total net profit of 190 million yuan was realized, an increase of 15.30% over the previous year. Brief review 1. In 2017, the company achieved operating income of 773 million yuan, an increase of 18.10% over the previous year, and realized net profit of 190 million yuan, an increase of 12.33% over the previous year. Among them, the white power business achieved operating income of 625 million yuan, an increase of 14.43% over the previous year, and realized net profit of about 130 million yuan, a slight increase of 4% over the previous year. The military electronics business achieved revenue of 148 million yuan, an increase of 36.54% over the previous year, and realized net profit of 0.6 billion yuan, an increase of 43.69% over the previous year. The revenue growth rate faster than the net profit growth rate was mainly due to the increase in raw material prices for the white power business in the fourth quarter. 2. A variety of white power products lead the industry, and steady growth can be expected. The company's products such as compressor starters, intake silencers, and refrigerator inverter controllers are in a leading position in the industry, accounting for 25%, 26%, and 17% of the market, respectively. Currently, the share of environmentally friendly and energy-saving products in the market is still low, and there is plenty of room for upgrading, which is enough to support the long-term steady growth of the company's white power business. 3. Radar simulators have expanded horizontally, and market share has further increased. During the reporting period, Huaqing Ruida horizontally expanded traditional radar template simulators into a series of electromagnetic frequency safety products such as radar targets, electronic warfare simulators, communication signal simulators, and ATE excitation sources, and added major customers such as Huaihai Industrial Group (which belongs to China Weapons) and Sichuang Electronics, further increasing its market share. 4. The new military electronics business has created new performance growth points. New businesses are blooming in many places: New businesses such as high-speed signal processing products, avionics module products, ultra-wideband signal capture and analysis systems, and stellar sensors are developing very well, and some products have begun to contribute profits. During the reporting period, the company acquired Leixin from the University of Technology and added the overall radar and core components of the new system based on radar support. There is broad scope for the future. 5. Driven by Baidian Military, the company's net profit from 2018 to 2020 is estimated to be 225 million yuan, 280 million yuan, and 344 million yuan respectively, with year-on-year increases of 18.63%, 24.16%, and 22.83% respectively. The corresponding EPS from 18 to 20 was 0.52, 0.65, and 0.80 yuan respectively, corresponding to the current stock price PE of 27, 22, and 18 times, maintaining the buying rating.