Payment returns, high cash flow events: Fenda Technology announced its 2017 annual report and 2018 quarterly report. As a result of the merger with Fuchengda, the company achieved revenue of 1.42 billion yuan, YoY +97.3% in the single quarter of 2017; achieved performance of 170 million yuan, YoY +14.1%. The 2018Q1 quarter achieved revenue of 640 million yuan, YoY +79.8%; achieved performance of 500 million yuan, YoY +20.5%. The company expects the 2018 H1 performance YoY to be +10.0% to +30.0%. Converted to Q2, achieving results of 885.93 million yuan to 110 million yuan in a single quarter, and YoY +4.4% to 35.0%. We believe that factors such as the exchange rate will only affect the company's performance in the short term. Considering that the company has strong competitiveness, it is expected that after management adjustments, Xinda's profitability will be restored. Accounts returned, and operating cash flow increased significantly: According to the announcement, the net operating cash flow of 2018Q1 companies was 430 million yuan, YoY +1279.7%. According to our analysis, the high growth in operating cash flow was mainly due to the company's recovery of previous futures payments. Accounts receivable at the end of March fell by 45.8% compared to the beginning of the period, resulting in 2018Q1 YoY +143.5% in cash received from sales of goods and provision of labor services. Considering that at the end of the first quarter, advance payments increased by 111.1% compared to the beginning of the period, subsequent revenue growth is highly certain, which can guarantee the company's abundant cash flow. Short-term profitability is under pressure due to factors such as costs: The company's 2017Q4 and 2018Q1 performance growth is slower than expected, mainly because: (1) The increase in electronic raw material prices compounded by the impact of foreign exchange, and the decline in gross margin. The gross margin of 2017Q4 and 2018Q1 decreased by 6.0pct/5.0pct year on year. (2) RMB appreciates, and financial expenses increase. The financial expenses for 2018Q1 were 43.359 million yuan, compared to only 5,557 million yuan in the same period last year. Excluding exchange gains and losses, 2017 YoY results were +33.0%. However, in the long run, Funda's fundamentals are healthy. We believe that phased currency fluctuations are an external factor and do not damage its long-term investment value; assuming that future raw material prices remain at current levels, the company's gross margin is expected to increase as the product structure is optimized. Investment suggestions: We expect the gradual increase in orders from Sony and other customers, which will strongly boost Opunda's performance; the company's traditional business customer relationships are stable and has a strong competitive advantage; and Fuchengda has sufficient on-hand orders. As synergies show, the number of orders from customer A is expected to continue to expand. We expect the company's EPS from 2018 to 2019 to be 0.38/0.46 yuan respectively, maintaining the buy-A investment rating. The six-month target price is 12.16 yuan, corresponding to the dynamic price-earnings ratio of 32 times in 2018. Risk warning: raw material costs are rising, and exterior materials are rapidly iterating