Committed to serving the development of advanced weapon systems represented by missiles, the company focuses on providing high-precision components, devices, systems and solutions in the fields of optical target and scene simulation, optical guidance, special optoelectronic testing, and laser countermeasures, and has the ability to develop and mass-produce a wide variety of high-end military products. The optical target and scene simulation systems produced by the company are leading in China, the optical guidance system is advanced in China, and the special optoelectronic test equipment is efficient and stable. It can be used in the R&D, production, testing and inspection of missiles during service, or will directly benefit from the standardized installation of advanced weapons and equipment construction represented by missiles. The company's research team and R&D strength are outstanding. The actual controller Kang Weimin was the director of the Target Simulation and Testing Technology Research Institute and held 67.48% of the shares in the listed company; the company has 108 R&D personnel and hired 9 experts from Harbin Institute of Technology and other organizations to provide technical support for the company's scientific research and innovation, and has undertaken more than 110 scientific research and engineering projects. Based in aerospace, the company is a core supplier of optical target and scene simulation and optical guidance. Optical target and scene simulation systems provide optical dynamic targets or scenarios for the development, testing and verification of optical guidance weapons. Its application can effectively save live fire targeting costs, significantly shorten the development cycle, and greatly reduce R&D costs. Since its establishment, the company has delivered more than 50 sets of optical target and scene simulation systems, and has rich engineering experience. At present, the product has been successfully used in the development of key types of missiles in many countries, and can be upgraded according to changes in demand, and has good scalability. The guidance control system is the core component of the missile and can account for more than 40% of the missile cost. The optical guidance system is an important part of the accurate guidance system. The company solved the problem of traditional infrared imaging guidance systems not working properly due to extreme high speed conditions, and successfully applied direct image stabilization technology to optical guidance, and developed principle prototypes for use in certain key models of equipment. At present, the company has undertaken the development of 4 optical guidance systems. Of these, 1 has been approved, 3 are in the process of development. It already has the ability to develop optical guidance systems, and is also undertaking a number of optical guidance system component research and development product projects. The company is based on Aerospace Science and Industry and Aerospace Science and Technology Group, and is actively expanding new customers. It is expected that with the mass production of R&D projects, it will become an important performance growth point for the company. Raising supporting capital will further enhance the company's industrialization capacity. The company now issued 25 million shares at 38.09 yuan/share to raise a total of 952 million yuan. The investment projects all revolve around the existing main business, including the upgrading of batch production lines for opto-mechatronics products, precision optoelectronic parts manufacturing projects, and Ruiguang Aerospace's optoelectronic equipment R&D and production projects. Through the opto-mechatronics integration project, the company is continuing to invest in R&D to lead product technology progress, adjust the product structure, and increase the proportion of mass-produced products to meet the higher requirements placed on the company's basic mass production conditions and supporting testing conditions by early incubation and ongoing implementation of a number of model projects with a large production background. Through the Ruiguang Aerospace Optoelectronic Equipment Project, we will improve the development and development capabilities of laser countermeasures products, etc. It is estimated that after completion of each project, it will reach the annual production scale of 380 sets of optical targets and scene simulation systems, 12,000 sets of optoelectronic systems and components, 4,200 sets of other optoelectronic products; 50 sets of laser foreign matter removal equipment, 200 sets of intelligently manufactured non-standard photoelectric detection equipment, and 1,000 sets of drone photoelectric load equipment. Investment proposal Xinguang Optoelectronics is a high-tech manufacturer dedicated to serving precision guided weapons. It focuses on providing high-precision components, devices, systems, and solutions such as optical target and scene simulation, optical guidance, optoelectronic special testing, etc., or will directly benefit from continuous customization and mass production of missile models. The company's net profit growth rates in 2019-2021 are expected to be 16%, 19%, and 23% respectively. Using relative valuation methods, comparable companies mainly include Gaode Infrared, Dali Technology, Jiuzhiyang, Accurate Information, etc., which correspond to the 19-year dynamic PE of 45.76, 75.64, and 77.67, respectively. The total share capital of the company after this issuance did not exceed 154 million shares. After comprehensive consideration, the reasonable price range after listing was 35-45 times, the reasonable market value range was 296-3.81 billion yuan, and the corresponding reasonable stock price range was 29.6-38.1 yuan/share. Risk warning: R&D progress falls short of expectations; mass production of key models falls short of expectations