The announcement company released its first quarter report for 2017, with revenue of 69.8 million yuan, an increase of 2.56% over the previous year. Net profit of the mother was 30.5 million yuan, an increase of 2.92% over the same period last year. There is still a lot of room for thermal magnetic tickets. After production capacity is expanded, the thermal magnetic ticket business still occupies a leading position in the company's revenue. Judging from the thermal magnetic ticket industry as a whole, there is still plenty of room to replace traditional paper red tickets in the future. Driven by natural growth in railway capacity and the development of the Belt and Road, it is still expected to maintain a high rate of growth in the future. At the same time, as demand continued to grow rapidly in previous years, the company's production capacity has been limited. On February 27 of this year, the company announced the launch of a thermal magnetic ticket production expansion project to expand production capacity using 805.31 million yuan of fund-raising. We expect the company's production capacity to reach 3,000 tons per year after this expansion. At the same time, with the implementation of the “Belt and Road” strategy, China's high-speed rail is going abroad, and the development of overseas markets for thermal magnetic tickets is facing good opportunities. In 2016, the company's thermal magnetic ticket products successfully won the bid for the Taiwan Railway Ticket Project and officially entered Taiwan's railway system. The first batch of products has been sent. Electromagnetic shielding film for FPC and series products worth looking forward to FPC electromagnetic shielding film is a functional film material used for electromagnetic wave protection for flexible circuit boards. It is widely used in mobile phone circuit boards, LCD modules, high-resolution cameras, automotive electronics, game consoles and other industries. With the development of wireless charging, 5G communication, high-speed optical fiber networks, and automotive electronics, the application space of this material will become more and more extensive. At the same time, since the current global competition pattern for high-end products is almost monopolized by Japanese companies, we believe this will be the next blue ocean for consumer electronics. The coating technology and new material technology required for the product also happen to be the key direction of the company's long-term accumulation, so the advantages of technology reserves are obvious, and it is hoped that the company's diversified product pattern will be developed after sales are formed. In the background of the Aerospace Science and Technology Group, products are expected to be extended to the military industry Zhang Xinming, the chairman of the company, once served as the deputy director of the Fourth Aerospace Academy. The company's newly expanded products and various business layouts are actually expected to expand demand in the aerospace and military industry field. In the context of civil-military integration, as a military enterprise holding company, the original product line is in line with the country's development ideas. Meanwhile, the asset securitization rate of the Aerospace Science and Technology Group will substantially increase during the “13th Five-Year Plan” period. Investment suggests that the company's traditional business is expected to maintain rapid growth while expanding production. After the new business forms sales, it will expand its product line and be in the new blue ocean of consumer electronics. We expect the company's EPS in 2017-2019 to be 1.06, 1.25, and 1.55 respectively, maintaining the buying rating. Risk warning: New business development falls short of expectations, and progress in expanding thermal magnetic ticket production falls short of expectations.