Main business. The company focuses on providing high-precision components, devices, systems and solutions in the fields of optical target and scene simulation, optical guidance, optical-specific testing, and laser confrontation. The products are mainly used in the military and military industry group research institutes to develop and test missile weapon systems. Performance situation. In 2016-2018, the company's revenue was 159 million yuan, 182 million and 208 million, respectively, and net profit was 67 million, 40 million and 73 million respectively. The compound growth rates of main business revenue and net profit in the past two years were 9.5% and 2.8%, respectively. In 2018, the company's gross margin was 48.59%, and the net profit margin was 34.85%. Industry position and competitive advantage. As a civil-military integrated high-tech enterprise, the company is a leader in the field of military optical simulation in China. The company's military optical simulation system covers visible light, infrared, laser and millimeter wave bands. The technical level has reached advanced international and domestic leadership. It has developed a four-generation series of products. Some indicators surpass similar products from abroad, and won the first prize for national defense science and technology progress in 2016. The company has the ability to develop and mass-produce a variety of high-end military products, breaking foreign technology blockades and filling domestic gaps in various product segments. The photoelectric target imaging system developed by the company was successfully applied to the “Long March 7” launch vehicle. It solved the problems of accurate imaging light control and imaging quality under widespread changes in temperature and air pressure during its launch, and played an important role in scientific and technological innovation in China's national defense science and technology industry. Overall evaluation and valuation recommendations. As science and technology continue to advance and technological means continue to be upgraded, informatization will play an even more important role in war. In recent years, elements of informatization have penetrated into every aspect of warfare, gradually replacing mechanized elements as an important feature of modern warfare. Judging from the evolution of modern wars, information systems such as optoelectronic systems such as precision guidance weapons and command automation have been applied on a large scale, and informatization has become one of the hallmarks of modern warfare. Furthermore, as national defense spending continues to grow, equipment procurement efforts increase, two years after entering the 13th Five-Year Plan, and national defense informatization construction enters a critical stage, 2019 and 2020 are expected to enter a compensation period for equipment construction, and order growth in the military electronic information industry is expected to increase further. The company has broad prospects for development. Comparable companies had a static PE range of 84-136 in 2018, and Xinguang Optoelectronics's reasonable stock price range is expected to be 38-61 yuan. Risk warning: policy risk, product demand is lower than expected, product development is lower than expected.