The company announced that from January to September 2019, it achieved operating income of 1,431 billion yuan, an increase of 60.31% over the previous year, and realized net profit of 98.193 million yuan, an increase of 282.56% over the previous year. Q3 achieved revenue of 522 million yuan in a single quarter, an increase of 49.59% over the previous year, and realized net profit of 377.5556 million yuan, an increase of 207.89% over the previous year. The impact amount of non-recurring profit and loss projects was RMB 3,5526 million. Performance in the third quarter maintained high growth, and profitability increased significantly year over year. The company's traditional main business was the manufacture and service of precision cabinet systems. In January 2018, it acquired 100% of Beaufort's shares at a price of 750 million yuan and entered the field of mobile communication equipment manufacturing. The new business became the core driving force for the company's performance growth. In the first half of 2019, the company's revenue according to business was divided into antennas accounting for 31%, RF devices for 29%, elevator cabinet systems for 26%, special equipment cabinet systems for 4%, and others for 10%. The sharp increase in the company's performance in the first three quarters was mainly due to the rapid growth of 5G mobile communication equipment products and the company's expansion into overseas markets, which led to a sharp increase in sales of the company's mobile communication equipment related products. The gross margin and net profit margins for the first three quarters were 19.69% (14.73% in the same period last year) and 7.78% (3.13% in the same period last year), and profitability increased markedly. Actively developing overseas customers and markets, and thoroughly deploying ceramic dielectric waveguide filters, Beaufort, a subsidiary company, has both antenna and filter manufacturing capabilities. Its core customers are ZTE and NEC. At the end of 2018, the company received the first order in the North American market and successfully completed delivery. In the first half of 2019, the company entered the Ericsson supply system, and customers and overseas markets developed smoothly. In terms of filter categories, the company supplies 5G small metal cavity filters to customers in large quantities, and ceramic waveguide filters are shipped in small batches. In the first half of the year, the company acquired Jetpin Electronics to further expand R&D, production and sales of ceramic waveguide filters. According to the latest announcement, the company plans to use its own funds to purchase land in Suzhou to build a new 5G ceramic waveguide filter production capacity. The total amount of the current investment plan is 195 million yuan, including payment of land prices and major fixed asset investments. With the improvement of the product line, the company is expected to gain a higher share of core customers. Optimistic about the market elasticity of 5G antennas and radio frequency, coverage for the first time, and the “increase in holdings” rating. It is expected that the company's deep layout in the field of antennas and filters will benefit from the integrated supply trend of active antennas and the market elasticity of 5G antennas and radio frequency. The net profit for 19-21 is estimated to be 1.55/2.61/319 million yuan. The current stock price corresponding to PE is 40/24/19 times, respectively, covering the first time, giving it an “increase in holdings” rating. Risk warning that the progress of 5G investment falls short of expectations; the risk of 5G new product development; the risk of excessive price competition in the industry