Material development and automated production are the company's core competitiveness. The company's products are spread across various fields such as 3C, photovoltaics, lithium batteries, automobiles, industry, medical care, etc., and the success rate is extremely high. The sales cost ratio is significantly lower than that of competitors, but it is favored by leading companies in various fields. Excellent material development capabilities, highly automated production capabilities, and customized business models are the keys to the company's successful replication. Diamond wire prices have stabilized in the short term, and the diamond wire market has not yet reached the balance between supply and demand, and high-quality fine wire is still in short supply. The current high gross margin can still be maintained for 1-2 quarters. Prices are expected to decline in the third and fourth quarters of '18. Tony Electronics has the advantage of ultra-fine wire, unique wire drawing process, and strong cost control ability. After technical reform, not only was production capacity increased exponentially, but unit labor costs were also drastically reduced, making its advantage prominent in future competition. In-depth benefits Apple's next-generation wireless charging solution Apple's next-generation mobile phone wireless charging receiver solution will be converted from FPC to coil. The company's superconductor+nickel-iron coating material is an important solution to support wireless charging at the receiver end of the next generation of Apple phones. We expect the company to share the huge benefits brought by the technology change. New products have been cultivated for a long time, and the market space for new products is huge, and the market space for new products is at the level of 10 billion. 2018 is the first year of sales for the Gillar business. The company has begun batch supply to some downstream parts, and has strong import substitution capacity, benefiting from the increase in the penetration rate of soft pack power batteries and the popularity of 48V hybrid systems. High-voltage automotive wiring harnesses, ultrasonic medical wiring harnesses, and industrial robot wiring harnesses are currently connecting with leading companies. Profit forecast and valuation expect the company to achieve net profit of 4.6/6.3/72 billion yuan in 18-20, corresponding EPS of 4.53/6.19/7.08 yuan. The current PE in 18-20 is 22/16/14 times. The company was given a purchase rating based on PE of 30 times in '18, and the target price was 135 yuan.