The three-quarter report was in line with expectations. The performance growth reached a new high. The company achieved operating income of 1,650 billion yuan from January to September 2018, an increase of 34.60% over the previous year; realized net profit of 185 million yuan, an increase of 64.58% over the previous year, and net profit after deducting a 50.69% year-on-year increase; in line with mid-term business performance expectations. Among them, the third quarter achieved operating income of 634 million yuan (+37.33% year-on-year), realized net profit of 82 million yuan (+114.06% year-on-year), and net profit after deducting non-return net profit increased by 101.91% year-on-year. At the same time, the company expects net profit from the mother to increase by 35%-70% in 2018. Revenue growth was the main driving force for profit improvement. Exchange earnings also brought about a sharp year-on-year increase in net profit of flexible companies in the third quarter. The main benefits were: 1) The company advanced to high-value-added products such as computers, communication equipment, and automotive electronics on the basis of the original consumer electronics products, fully expanded the European and North American markets, focused on large-scale high-quality customers, and drove sales revenue to increase from 462 million yuan in the same period last year to 634 million yuan; 2) Benefiting from the favorable impact of foreign exchange, financial expenses in a single quarter reached 115 million yuan, thus contributing 18% to annual results. Guarantee. Deepening technology research and development to help the company's development According to Prismark statistics, China's PCB output value reached 29.73 billion US dollars in 2017, more than half of the world's total output value. It is estimated that in 2022, the output value of China's PCB industry will reach 35.69 billion US dollars, and the growth rate will be significantly higher than the growth rate of the global PCB industry. In order to further maintain its competitive advantage in the industry, the company increased investment in technology research and development and improved the science and technology innovation system. From January to September 2018, R&D expenses were 62 million yuan, accounting for 3.73% of operating income, an increase of 30.92% over the previous year. At present, the company has certain R&D capabilities for high-end HDI boards, and the production level of automotive boards has been certified by some internationally renowned automotive board suppliers. The company will improve production technology, achieve high-quality, mass production of high-end HDI boards and automotive boards, and lay the foundation for entering new markets. Profit forecasting and investment rating companies strive to seize the dividends of industry development by improving product structure, developing high-quality customers, and relying on competitive advantages such as technology research and development and intelligent manufacturing. Therefore, we expect the company's net profit in 2018-2020 to be 240/2.65/326 million yuan, respectively, and the corresponding PE is 25.4/23.0/18.7 times, giving a “buy” rating. Risk warning: New business progress falls short of expectations; impact of upstream price changes.