Focus on military electronics to create an autonomous and controllable pioneer. Through internal and external extension, the company already has high-quality military assets such as Shaoguang in Changsha, Wolke Electronics, and Hunan Jiuqiang. The business field covers the R&D, design, packaging, integration, and downstream application of military chips. While the military electronics ecosystem is improving day by day, it has become an important support for China's autonomy and control. In the future, while further improving its business layout around the military electronics industry chain, the company will also strengthen the development of new products such as GPUs, accelerate the introduction of new products using the advantages of the entire industry chain layout, and achieve a positive cycle of mutual reinforcement between products and ecology. Informatization is superimposed on autonomy and control, and the prospects for military electronics are broad. Benefiting from continued growth in national defense investment and key investment in informatization construction, demand for military electronics continues to grow rapidly; benefiting from the demand for localization of military products and the increasing urgency of autonomy and control in the civilian sector, domestic electronics companies have ushered in important opportunities to gradually enter important civilian supply chains while consolidating the military market. The company announced that it will participate in the establishment of Wolters Radio Frequency to engage in R&D, production and sales of high-end RF devices for 5G communication base stations, military radar, etc., and to accelerate development through industrial dividends. The restructuring of the controlling shareholders' debt continues to advance. The debt restructuring between Xinyu Haoyue, the company's current controlling shareholder, and Wuhan Credit Group continues to advance. After Wuhan Credit Group joins, on the one hand, major uncertainties will come to an end; on the other hand, the company will receive credit endorsement from state-owned enterprise shareholders, and the equity structure will also be relatively stable, which is conducive to the accelerated advancement of the company's development strategy. Earnings Forecast and Investment Rating: Overweight Rating. Against the backdrop of national defense informatization construction needs and autonomy and control, the military electronics industry has ushered in development dividends; the company has accelerated its business layout and formed a complete upstream and downstream industrial chain, and development is expected to continue to accelerate. The price of the company's chemical products has declined. The company's related mergers and acquisitions are not being considered yet. The net profit of the company in 2019-2021 is estimated to be 384 million yuan, 440 million yuan and 527 million yuan respectively, corresponding to EPS of 0.56 yuan, 0.64 yuan and 0.76 yuan respectively, corresponding to the current stock price PE of 17 times, 15 times and 12 times, respectively, giving a rating of increase in holdings. Risk warning: The development of investment subsidiaries falls short of expectations; debt restructuring falls short of expectations; the stabilization of the chemical business falls short of expectations; and the company's profit falls short of expectations.