Experts in optics and optoelectronics in the military industry, master core technology. The company's main business is high-precision components, devices, systems and solutions in the fields of optical target and scene simulation, optical guidance, special optoelectronic testing, and laser confrontation. It has broken through key core technologies such as image scanning imaging guidance, broken foreign technical blockades against China and filled domestic gaps in various product segments. The company won the first prize of the National Defense Science and Technology Progress Award in 2016, and undertook major supporting development work such as 2 national vertical research projects, 4 major national science and technology projects, and high-tech projects. The company is an industry-university-research strategic cooperation unit of Harbin Institute of Technology. The chairman and controlling shareholder, Mr. Kang Weimin, has been the director of the Target Simulation and Testing Technology Research Institute at Harbin Institute of Technology for a long time. Optoelectronic systems are the development focus of military electronic informatization, and will benefit from the acceleration of our military's informatization construction. Optoelectronic equipment and systems cover various fields such as precise guidance, navigation and guidance, early warning and remote sensing, investigation and monitoring, fire control and targeting, optoelectronic measurement, optoelectronic communication, and optoelectronic countermeasures. Taking laser technology as an example, China still has many gaps in its application and high-end core technology compared to European and American countries. Laser confrontation is an important part of the information war, and it is an important means for the military to win the information-based local war. The report of the 19th National Congress of the Party proposed the goal of “ensuring that mechanization is basically achieved by 2020 and that significant progress has been made in informatization construction”. The optoelectronic system will directly benefit from the acceleration of our military's informatization construction process. The company is committed to the field of optical precision guidance and has significant competitive advantages. Precision-guided weapons have increased their usage rate in the 2003 Iraq War to over 70% due to their advantages such as long range, strong accurate strike capability, and low civilian casualties. The company's business focuses on the field of accurate guidance. The main revenue sources in 2019 were optical guidance systems, optical target and scene simulation systems, accounting for 72% of the total. The company's core technologies are all in a leading position in China. As of June 30, 2020, it has carried out engineering verification of image square scanning medium wave imaging technology and fast mirror image shift compensation technology. Currently, it is one of the few domestic companies that successfully apply image stabilization technology to guidance systems; optical target and scene simulation systems have developed a four-generation series of products, and some indicators surpass similar foreign products. Profit forecasting and investment advice. We expect the company's net profit to be 0.82/1.05/130 million yuan in 2020-2022, respectively, and the PE corresponding to the current stock price (2020/09/22 closing price) is 69/54/43 times, respectively. Based on the comparable company's PE valuation situation, the company was given a PE valuation of 80-83 times that of 2020, with a corresponding reasonable value range of 65.56-68.02 yuan. For the first time, coverage gave a “superior to the market” rating. Risk warning: Key model development or batch production progress falls short of expectations; risk of performance fluctuations due to VAT refunds or the pace of military order confirmation.