Incident: The company released the 2019 three-quarter report forecast. The net profit for the first three quarters of 2019 is expected to be 0.85 yuan to 110 million yuan, an increase of 230%-330% over the previous year. In a single quarter of the third quarter, the company expects to achieve net profit of 2426.40-49.311 million yuan, an increase of 97.87%-307.18% over the previous year. Our comments include: The performance is basically in line with expectations, products such as 5G antenna filters continue to grow rapidly, and Ericsson and overseas customers in North America are expanding smoothly, driving the company's rapid growth in performance. The company began merging with its wholly-owned subsidiary Bovat in January '18. Beauvat benefits from deep 4G coverage and rapid growth in 5G construction demand from domestic and Japanese operators. Revenue from antenna and filter products continues to grow rapidly. At the same time, as the share of 5G products continues to increase, profitability is expected to further increase. In the first half of 2019, the company successfully entered the Ericsson supply system to achieve small-batch supply to Ericsson. At the same time, the US subsidiary Dengyo USA received the first batch of orders since the end of 2018. The North American market continued to expand, and the scope of overseas business continued to expand, further opening up the company's long-term growth space. Facing the 5G era, the company's product line has been improved, and products such as antennas, metal cavity filters, and ceramic filters have been comprehensively laid out. In 2019, ceramic filters have already begun to contribute to performance. At the same time, it has acquired Jiefin Electronics to further strengthen ceramic filter technology reserves and R&D capabilities. In the future of 5G, there are two main technology routes for metal and ceramic filters. The company has mature products and mass production capabilities in both fields, and the market competitiveness in the 5G filter field is outstanding in the future. Due to technological maturity and equipment vendor procurement, the company currently contributes a lot to 5G metal cavity filter revenue, and ceramic filters have also passed equipment vendor certification to achieve small-batch shipments in the first half of 2019 and began contributing to revenue. In terms of 5G filter technology selection, metal and ceramic solutions each have advantages and disadvantages in terms of maturity, performance, volume, weight, etc., and future operators and equipment vendors are expected to have certain requirements for both products. The company's metal cavity filters have continued to be delivered in large quantities, and ceramic filters have also begun to be shipped. At the same time, it has acquired 51% of Jiefin Electronics's shares (and signed a framework agreement to acquire the remaining 49% shares) to further strengthen technical reserves and R&D capabilities in the field of ceramic filters, and is expected to maintain outstanding product technical competitiveness in the 5G filter field. Profit forecast and investment advice: The company's traditional precision box business is developing steadily, and profitability is expected to be gradually optimized. Antenna and filter product technology and mass production capabilities are outstanding. 5G products continue to grow rapidly, and new customers such as North America and Ericsson are expanding smoothly. After the implementation of the domestic 5G license, the large-scale construction of 5G networks continues to accelerate, which is expected to drive the company's performance to continue to grow rapidly. We continue to be optimistic about the company's layout in the radio frequency field. As a leading domestic supplier of 5G antennas and filters, the company is expected to greatly benefit from deep 4G coverage and 5G network construction. As 5G construction progress and overseas market expansion progress exceeded expectations, the company's net profit from 1921 was raised from 1.56, 2.26, and 269 million yuan to 156, 2.60, and 324 million yuan, respectively, corresponding to price-earnings ratios 40 times in 19 and 24 times in 20, maintaining the “gain” rating. Risk warning: Product development risks, operators' capital expenditure falls short of expectations, market competition exceeds expectations