Abstract: The overall development momentum of the global lighting industry is good, and the prosperity continues to rise. Accelerated market penetration has brought new opportunities to the development of the LED lighting industry. Among them, commercial lighting grew by a blowout, public lighting grew rapidly, and home lighting began to be launched. In recent years, the company has vigorously adjusted its business direction to take LED lighting as its strategic direction. At present, the company's product line covers five major categories, mainly LED commercial lighting, home lighting, office lighting, outdoor lighting, and electricians. After decades of brand building, with high popularity and recognition, the brand and channel will become an important fulcrum for the company to win in the end. The company's intelligent lighting products have achieved mass production scale, and by increasing the proportion of new products in sales revenue, it forms a driving force for performance growth. Sunshine will increase the sales volume of lamps in the future, and the proportion of the company's lighting business will continue to rise. At the same time, the company's own brand business will enter the fast track. The decline in earnings in 2017 is temporary. The company will continue to benefit from increased demand in the global lighting market, and the company's performance will return to a growth trajectory in the next few years. Profit forecast: We expect the company's revenue for 2018-2020 to be 60.9, 72.2, and 8.40 billion yuan; net profit attributable to shareholders of the parent company will be 6.3, 7.2 billion yuan, and 8.0 billion yuan, corresponding EPS of 0.44, 0.50, and 0.55 yuan respectively. We are firmly optimistic about the company's future LED business development prospects and our own channel advantages, and give it an “increase in weight” rating. Risk warning: 1) Competition in the industry intensifies, and the company's LED business growth is declining; 2) the company's gross margin is declining and the risk of exchange rate fluctuations.