Investment highlights: Events: Annual revenue of $151 billion, up 28% year on year; net profit of $1.18 billion, up 35% year on year. The 4Q single-quarter gross margin declined slightly month-on-month. 4Q had revenue of 4.76 billion dollars in a single quarter, with a gross profit margin of 16%, a slight decrease from the previous month. The horizontal and vertical extension logic continues to be implemented: in 2016, Helitai's product structure was mainly LCM and touch modules; in 2017, the main business expanded from screen modules to fingerprint and camera modules; in 2018, new wireless charging modules were added, and nanocrystalline magnetic materials, FPC, and 5G materials were expanded vertically. The “1+N” strategy has achieved remarkable results, and there is still room for growth in monthly fingerprint and camera shipments. Promote cameras and fingerprint recognition to customers based on touch display module products. Since increasing camera production and construction efforts in 2017, the company has set up high-end, mid-range, and industrial-controlled vehicle camera production bases in Nanchang, Jiangxi, Ji'an, Shandong, and Yiyuan, Shandong, etc., respectively. The current monthly production capacity is 35KK/month. Nanchang Plant 1H2018 will produce high-end single camera, double camera and triple camera products for customers, further expand the range of products and increase the unit price of products. Lay out the entire wireless charging industry chain and develop high-end materials such as wave absorption and LCP. The company has mastered the technology and production technology of wireless charging nanocrystalline materials, strips, wave absorbing materials, large-screen touch and fine line FPC, LCP high-frequency materials, etc., enabling the company to enter first-tier brand customers at home and abroad. At present, the company has rapidly expanded production capacity for products such as wireless charging materials, transmitter modules, receiver modules, and absorber materials, and is already providing nanocrystalline materials and modules for wireless charging to first-tier customers at home and abroad. Focus on developing high-end FPC business. In 2017, the company's FPC business revenue was 1.04 billion yuan, mainly serving Huawei and OPPO flagship models. The company has planned a production base for high-end FPC, hard and soft boards, COF-FPC, LCP flexible circuit boards, and ultra-fine lines in Xinfeng, Jiangxi; built a new FPC production line in Wan'an, Jiangxi to solve the current production capacity bottleneck. It is expected that production capacity will be gradually released in Q2 2018 to improve service capacity for first-tier mobile phone brands, automobiles and other smart terminal customers. Maintain profit forecasts and maintain “buy” ratings. Maintain the 2018/2019 revenue forecast of 239/30 billion, net profit forecast of 1,82/2.48 billion yuan, increase 2020 revenue forecast of 40.8 billion yuan, and net profit of 3.47 billion yuan. The current stock price corresponds to a price-earnings ratio of only 17 times in 2018. The emphasis is on buying ratings based on the company's increase in market share in the middle and low end modules and the logic of domestic replacement of high-end materials.