Investment highlights: Events: 1Q2018 revenue of $3.65 billion, up 52.45% year on year; net profit of $291 million, up 40.56% year on year. After deducting non-net profit of 199 million, a year-on-year increase of 36.12%. Profit indicators were basically stable year-on-year, and differences in asset impairment losses affected the growth rate of operating profit. The gross profit margin for the first quarter was 16.93%, down 0.7% year on year and 1.1% month on month due to the increase in the share of camera products; the three cost ratios were 8.6%, down 1.2% year on year. The sum of other income and non-operating income in the current period was 121 million yuan. Compared with 1Q2017 non-operating income of 84.47 million yuan, an increase of 44% over the previous year, slightly higher than the growth rate of net profit. Compared with the previous year, due to bad debts on new accounts receivable during the reporting period, 1Q asset impairment losses were calculated at 6.57 million yuan, an increase of 389% over the previous year, and the share of revenue increased by 1.2 pct, affecting the total profit growth rate for the current period by 41.59%, which was lower than the revenue growth rate. The “1+N” strategy has achieved remarkable results. The growth rate for the first half of the year was 35.19%-56.75%. 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, with a monthly production capacity of 35 KK/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. The company's FPC mainly serves the flagship models of Huawei and OPPO. 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, and is expected to gradually release production capacity in Q2 of 2018 to enhance service capabilities for first-tier mobile phone brands, automobiles and other smart terminal customers. Products such as cameras and FPCs support 1H's net profit expectations of 69-800 million dollars. Lay out the entire wireless charging industry chain and develop high-end materials such as wave absorption and LCP. This is mainly due to the company's expansion of scale, large investment in camera and FPC circuit board production lines, and investment in the construction of two large-scale production bases. 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, etc., and is already providing nanocrystalline materials and modules for wireless charging to first-tier customers at home and abroad. Maintain profit forecasts and maintain a “buy” rating. Maintain the 2018/2019/2020 revenue forecast of 239/300/40.8 billion, and the net profit forecast of 18.2/24.8/3.47 billion. 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.