The smart home linear drive business is the main, and the linear drive products of Kaidi Co., Ltd. are gradually expanding into diversified markets, mainly covering the fields of smart homes, smart offices, medical devices, and electric tailgates. Among them, the smart home business accounts for about 70% of revenue and is the company's largest business segment. In recent years, the company has continuously increased investment in smart offices, medical devices, and electric tailgates to explore the market in all aspects. The company's downstream customers include not only multinational enterprises such as Southern Motion and Ashley, but also domestic leaders such as Gujia, Haipai, and Rongtai. Currently, the scale of overseas and domestic revenue is roughly similar. The emerging blue ocean market, driven linearly by increasing downstream demand, is an emerging industry that is on the rise. Currently, linear drive products have good applications in smart homes, smart offices, auto parts, medical devices, industrial automation, etc. As people's income increases and consumption attitudes increase, the application fields of linear drives will continue to expand, and demand in the downstream market is expected to grow exponentially. The European and American regions have developed economies and high per capita income. Currently, they are the main regions for consumption of linear drive systems. The rapid economic growth rate of emerging markets such as Asia, Oceania, and South America is an important driving force for the continuous growth of market size linearly. The size of the global linear drive market is expected to reach US$2.32 billion in 2020, with a compound growth rate of about 6.9% in 2015-2020. Listed capital raising solves production capacity bottlenecks, binds high-quality customer cooperation, and long-term stability. In recent years, the company's capacity utilization rate has been saturated, making it difficult to meet the market demand for linear drive system products. The company publicly issued 12.5 million shares in May 2020, raising a net capital of 1.07 billion yuan to expand production capacity and build R&D centers. The expansion of production capacity will help the company continue to strengthen its competitive advantage in the linearity-driven field and strengthen its market position. At present, the company has deeply tied up with high-quality customers at home and abroad to establish two rounds of long-term and stable cooperative relationships. The company enhances customer stickiness and dependency by continuously improving its product quality, product design capabilities, flexible production capacity and rapid response capabilities. Profit forecasts and investment recommendations predict that the company's EPS for 2020-2022 will be 3.87 yuan, 5.13 yuan, and 6.82 yuan, respectively, and the corresponding PE will be 31.4 times, 23.7 times, and 17.9 times, respectively, covering the first time, a “increase in holdings” rating. Risk warning: The global COVID-19 pandemic and trade friction between China and the US have had an impact on the company's overseas business; the company's domestic market development efforts have fallen short of expectations.