Guide to this report: Fuguang Co., Ltd. is a civil-military integrated enterprise engaged in R&D and production of optical lenses, optoelectronic systems and optical components. The increase in the national defense budget and the continuous expansion of the civil security market provide the company with an impetus for continuous development. Key investment points: reasonable pricing range is 21.3-28.3 yuan, recommended inquiry range is 23.3-28.3 yuan. Fuguang Co., Ltd. is a military and civilian integration enterprise specializing in the development and production of optical lenses, optoelectronic systems and optical components. Its business mainly focuses on military customized products and civilian non-customized products. Net profit for 2019-2021 is forecast to be 110 million yuan, 132 million yuan and 160 million yuan respectively, up 20%, 21%, and 21% year on year. Referring to the valuations of comparable listed companies and considering the high growth attributes of the company's military business, it is predicted that the price-earnings ratio of the company's issuance will be 30-40 times its performance in 2019, the reasonable pricing range for the corresponding company's issuance is 21.3-28.3 yuan, and the recommended inquiry range is 23.3-28.3 yuan. Participation in the subscription is recommended. The military business is developing rapidly, and the growth of the national defense budget provides a guarantee: In terms of military business, the company is one of the most important providers of military optical lenses and optoelectronic systems in China. In 2016-2018, the company's customized product revenue increased by 32.00% and 87.94%. In the information age, the application of optical technology in various weapons and equipment and special occasions has been greatly expanded, and it has become an indispensable and important part of modern military technology. At the same time, the steady increase in the national defense budget has provided a solid market foundation for the company's military product development. Security monitoring, the development of artificial intelligence, and promoting the civilian non-customized market: According to the TSR report, the company's global security video surveillance lens sales market share reached 11.8% in 2017, ranking third in the world. Zoom lenses rank second in global sales, with a market share of around 8.9%. In terms of security market prospects, developed regions have a lot of room for renewal, and the new demand for new markets in developing regions is huge. Market sales in 2021 are expected to increase from 185 million units in 2017 to 245 million units, with a compound growth rate of 7.2%. The fund-raising project will enhance production capacity and competitiveness: the capital raised will be used for the full-spectrum precision lens intelligent manufacturing base project, the AI optical sensing device development and industrialization construction project, and the construction of a precision and ultra-precision optical processing test center. The implementation of the fund-raising project will supplement the company's existing business structure and expand the scale, which is conducive to improving the main business capacity Risk warning: technical risk, risk of relying on core technical personnel, risk of trade friction