Incidentally, on April 18, the company released its 2017 annual report. In 2017, it achieved revenue of 567 million yuan, an increase of 35.34% over the previous year, and net profit of 123 million yuan, an increase of 35.08% over the previous year. Comment 1. Since its establishment, the company has focused on military business. It is mainly engaged in R&D, production and sales of products such as optoelectronic cables and components for national defense and military use, optoelectronic components, FC optical fiber bus switching systems, optoelectronic integrated equipment, and heat transmission. In addition to the military industry, the company is also responding positively to the country's “Belt and Road” strategy, expanding the high-end civilian market, and has passed civil product qualification certifications such as AS9100C-2009 aerospace quality system certification, China Classification Society factory certification, and IRIS (International Railway Industry Standard) quality management system certification recognized by the international aviation industry. 2. Cable business sector: The company has accumulated customer resources and first-mover advantage over many years, and has maintained steady growth throughout the year, achieving revenue of 231 million yuan in 17 years, an increase of 6.03%; Cable component business sector: downstream demand is strong, and the company's newly developed optoelectronic products have been fully applied to various airborne, shipborne, vehicle-mounted and electronic equipment platforms, and achieved batch equipment for optoelectronic transmission components and systems. In 2017, we achieved revenue of 248 million yuan, an increase of 26.67%. Among them, optoelectronic integrated products and FC optical fiber series products increased significantly, which have become the main growth points for the company's performance. 3. In order to further expand its business and enhance the company's market position in the military industry, the company acquired Changzhou Connett Environmental Technology Co., Ltd., a leading enterprise in the military seawater desalination industry, by issuing shares and paying cash. On June 30, 2017, the target asset transfer registration was officially completed, and Changkang Environmental Protection became a wholly-owned subsidiary of the company, marking the official entry of the company's business into the military seawater desalination equipment market. The main business of Changkang Environmental Protection is the design, assembly and production of water treatment equipment. At the same time, technicians design, assemble and commission according to customer needs. The seawater desalination devices it develops and produces are mainly used on surface, underwater, medium and large ship platforms. 4. The company's net profit from 2018 to 2020 is estimated to be 169 million yuan, 231 million yuan, and 312 million yuan respectively, with year-on-year increases of 37.4%, 36.62%, and 35.27%, respectively. The corresponding EPS for 18 to 20 is 0.54, 0.74, and 1 yuan respectively. Corresponding to the current stock price PE is 30, 22, and 16 times, respectively, maintaining an increase rating.