Sunway Co., Ltd. is a leading cable leader in domestic technology and market: Sunway Co., Ltd. is a national high-tech enterprise integrating R&D, production, sales and service of high-end special cable products. The cables it produces are widely used in many fields such as nuclear power, rail transit, electricity, military industry, and aerospace. The company attaches great importance to research and development. It invests no less than 3% of sales revenue in R&D every year, which has brought about continuous upgrading of the product structure. The company's special cables have maturely been used in high value-added fields such as nuclear power and rail transit. In addition, the company has established long-term fixed cooperative relationships with central enterprises and state-owned enterprises such as China Power Construction, China Hydropower, China Railway, China Guangzhou Nuclear, China Nuclear Power, China Nuclear Power, China Nuclear Power, and China Steel. At the same time, it has established strategic cooperation in the form of a consortium with China Steel Group to jointly undertake supporting construction for the Belt and Road projects and promote EPC turnkey projects in overseas markets. Various businesses have blossomed, and performance has resumed rapid growth: steel smelting, petrochemicals, electrical equipment and other fields are the company's traditional dominant markets. In 2018, its competitive advantage was further expanded. Revenue in the electrical equipment, steel, metallurgy, and petrochemical markets increased sharply throughout the year, achieving sales revenue of 766 million yuan, an increase of 235.23% over the previous year. In addition, the company has also made major breakthroughs in rail transit, nuclear power and new energy, and overseas markets. In terms of rail traffic, in 2018, the company successfully independently developed high-flame-retardant and low-emission Class B1 cable products for rail transit, which was widely recognized; in the field of nuclear power and new energy, orders also grew rapidly. In 2018, the nuclear power and new energy markets achieved sales revenue of 188 million yuan, an increase of 150.25% over the previous year; in terms of overseas expansion, the company set up an international division and carried out strategic cooperation with China Steel Group to focus on expanding countries along the Belt and Road. In 2018, the company's overseas business achieved revenue of 170 million yuan, an increase of 33.3% over the previous year. The growth of various businesses has contributed to high growth in the company's performance. In 2018, the company achieved revenue of 1,575 billion yuan, an increase of 72.29% over the previous year, and realized net profit of 58 million yuan, an increase of 243.4% over the previous year. Furthermore, according to the 19Q1 performance forecast, net profit of 152-20.5 million yuan was 152-20.5 million yuan in 19Q1, compared to -7.4495 million yuan in the same period last year. The high performance requirements of equity incentives show confidence: In 2018, the company completed the grant of 9.54 million restricted shares to 135 incentive targets that met the grant conditions. The incentive targets included company directors, senior managers, middle managers and core executives. The net profit corresponding to the unlocking conditions in 2018-2020 was 0.5/1/2 billion yuan respectively. The company's performance unlocking conditions fully demonstrated the company's management's confidence in the company's future operations. Investment suggestions: We expect the company's revenue in 2019-2021 to be 26.26/36.05/4.597 billion yuan, with growth rates of 66.7%/37.3%/27.5% respectively; net profit of 1.11/2.15/296 million yuan, growth rate of 90.6%/94.4%/38% respectively; initial coverage, “increased holdings” rating, with a target price of 9.43 yuan. Risk warning: Increased competition has led to a sharp decline in gross margin; prices of major raw materials such as copper have risen sharply, etc.