The company is committed to research on common technologies with a wide range of applications and industry universality, such as electrical industry standards, testing technology, system integration technology, electric energy conversion technology, advanced control technology, material technology, etc., and has obtained a series of core technologies. Through the transformation of scientific and technological achievements, the company has formed three major business areas, including quality technical services, intelligent equipment, and environmentally friendly coatings and resins, to provide downstream electrical appliance manufacturers with solutions and technical services related to product quality improvement. While the testing industry is experiencing explosive growth, it is also about to be reshuffled. At present, China's testing industry is in a stage of rapid development, showing a competitive pattern with many institutions and a small number of individual institutions. The level of marketization of the entire testing industry is still low. Compared with foreign countries in terms of technical level, management experience, and business methods, etc., there is a big gap. Testing institutions with strong technological and innovative capabilities have not yet fully demonstrated their credibility and brand benefits. Under the influence of multiple factors such as policy liberalization, policy procurement, institutional integration, increased customer requirements, and capital entry, China's testing industry is experiencing explosive growth and is also about to be reshuffled. A number of comprehensive large-scale service agencies and specialized service agencies focusing on providing in-depth quality technical services will emerge in the industry. There is great potential in the field of intelligent equipment for home appliances. As manufacturing costs in the home appliance industry rise and market competition intensifies, raising the level of informatization, digitalization, and automation of home appliance process equipment and achieving lean production management has become a hot topic of concern for the industry at present. The goal of intelligent manufacturing in the home appliance industry is to optimize the production process and greatly improve the performance, function, quality and efficiency of the production system. The key development direction is digital workshops and digital production lines. In the context of economic transformation and rising labor costs, demand in the global robot market continues to rise. With the application of industrial robots, major domestic home appliance companies carry out automated and intelligent transformation in order to respond more quickly to market changes and obtain more efficient manufacturing capabilities and higher quality product quality control. The variety of paint is gradually shifting from mainly solvent-based coatings to environmentally friendly coatings. Chinese coatings have shown rapid development in the past ten years, which is inseparable from China's rapidly growing economy. In order to reduce VOC pollution to the atmosphere and the utilization rate of limited resources, environmentally friendly coatings have developed rapidly. At the same time, with the continuous advancement of “paint to powder,” “paint to water,” and national environmental protection policies, the main types of coatings in China have gradually changed from mainly solvent-based coatings to environmentally friendly coatings. Quality technology and inspection services are comparable to international giants. In terms of quality and technical services, the China Electric Appliance Institute has long been engaged in research on the basic rules and mechanisms of environmental adaptability of electrical products. Since 1980, the company has hosted and participated in the formulation and revision of more than 1,000 international, national, industry and local standards; in recent years, the company has hosted and participated in the revision of 30 IEC international standards. Through innovation in technical standards, the company has led the technological progress of the industry and established the company's superior position in quality technical services in the electrical appliance industry. In terms of quality inspection, the inspection reports issued by the China Electric Appliance Institute have been recognized by more than 100 authorities in more than 70 countries and regions around the world. Authorized entities include the China National Accreditation Committee for Conformity Assessment (CNAS), US Energy Star, Germany's DAKs, Saudi Arabia SASO, the Gulf GSO, Hong Kong EMSD, etc. In 2017, the company's quality and technical services generated 447,000 yuan per capita revenue, which is higher than the domestic industry average of 212,400 yuan, and close to international giants such as Intertek, BV, and SGS. Company valuation and quotation recommendations: We predict that the company will achieve net profit attributable to owners of the parent company in 2019-2021 to be 229 million yuan, 299 million yuan and 360 million yuan respectively. Based on the calculation of 404.5 million shares after issuance, the company's EPS is 0.57 yuan, 0.74 yuan and 0.89 yuan respectively. We selected the comparison company with an average price-earnings ratio of 18.17 times in 2019. The company's price center was 10.36 yuan/share, and the reasonable price range was 9.42 yuan/share to 11.30 yuan/share. Risk warning: 1) the risk of high customer concentration; 2) the risk of the intensification of the trade war between China and the US.