Guide to this report: The company's press equipment sales are transforming into lightweight parts manufacturing. Relevant core technologies have been developed for many years, and orders are growing at an accelerated pace. Benefiting from the development trend of new energy vehicles in China, the lightweight parts market is huge, and the company has great potential for growth. Key investment points: Conclusion: The company has been actively transforming the manufacturing of lightweight composite parts for automobiles and has been devoting itself to research related manufacturing technology for many years. Since the end of last year, it has successively received orders from Geely and CATL. Market recognition for lightweight composite components has accelerated, and an inflection point in growth has arrived. The EPS for 2017-2019 is predicted to be 0.02 yuan/0.27 yuan/0.63 yuan. We are very optimistic about the company's growth potential in this field. We will give a PE valuation of 35 times in '19, corresponding to the target price of 22.05 yuan. For the first time, we have covered it for the first time and give it an increase in holdings rating. Firmly transform composite parts manufacturing, and have mastered core processes and equipment for many years in R&D. ① The company's traditional main business is press equipment. The industry fluctuates greatly and is fiercely competitive due to macroeconomic influence. After its launch in 2010, it actively transformed lightweight parts manufacturing based on its own press technology. ② The company mastered the LFT-D process and production equipment in 2012 and the HP-RTM process and production equipment in 2015. It has successive manufacturing capabilities for glass fiber composite parts and carbon fiber composite parts. With the general trend of automobile weight reduction, the rise of electric new energy vehicles accelerates the formation of a trend. ① It is a general trend to reduce the weight of automobiles to improve environmental protection, economy and safety. ② Electric new energy vehicles are limited by battery energy density and short battery life, and weight reduction will significantly increase the range and enhance the overall competitiveness of car companies. The rapid development of new energy vehicles is accelerating the trend of weight reduction. It has successively received orders from Geely and CATL, and the market recognition of lightweight composite parts has accelerated. ① In December '17, it was ordered to open the upper cover of the CATL battery case. The total life cycle revenue is estimated to be 150 million, and the Geely MPC-1 British taxi exterior cover opening order was obtained in the same month, with an estimated lifetime revenue of 450 million. ② The company has been recognized by leading leaders one after another. It has gone through the most difficult initial promotion stage, and the inflection point of the company's growth has arrived. ③ The company is expected to receive further orders from car companies one after another, and the catalyst will continue. Risk warning: Mass production falls short of expectations, and downstream procurement progress falls short of expectations.