The company's business situation is stable, awaiting the release of new production capacity, and maintaining the “buy” rating. The company's operating income for the first three quarters of 2020 reached 1.63 billion yuan, YoY +9.5%, net profit of 110 million yuan, and YoY +2.8%. Among them, the single quarter revenue of 2020Q3 reached 650 million yuan, YoY +17.8%, QoQ +14.3%, net profit of 56 million yuan, YoY +6.6%, and QoQ +60.0%. Considering that the pressure on financial expenses eased after the company raised capital was put in place, the company's net profit for 2020/2021/2022 was adjusted slightly from 2.2/26/3.3 billion yuan to 2.3/29/3.6 billion yuan, and the EPS was adjusted to 0.46/0.59/0.72 yuan. The current stock price corresponding to PE is 28.2/22.2/18.3 times, maintaining the “buy” rating. The HDI product shipping structure was upgraded. The gross margin in a single quarter increased month-on-month, and the company's HDI products accounted for nearly 35% of hard board revenue. Since 2020Q1, product upgrades achieved through technical reform have shown initial results. The gross margin in a single quarter reached 23.4%, an increase of 2.4 pct over the previous quarter. The company's original HDI production capacity was designed in 2012 and put into production in 2014. It is one of the companies with a forward-looking layout of HDI among domestic manufacturers, but the original production capacity is limited by the old equipment. The mass production products are mainly first-class, accounting for more than 50%. The company achieved technical reform in early 2020 and carried out equipment improvements in core dry film procedures and laser drilling processes. There have been obvious results since 2020Q3. At present, HDI second-tier products already account for more than 60% of revenue. It is expected that production capacity and manual grinding will stabilize. 2020Q4 gross profit margin There is room for further improvement. FPC products are supported by BOE, and the HDI fund-raising project is funded. The company is promoting the expansion of HDI and FPC business production capacity. The company plans to build a high-density printed circuit board construction project in Fushan, Zhuhai. The total proposed investment amount is 1.64 billion yuan, of which the proposed investment amount is 1.2 billion yuan. Currently, non-public development funds are in place. Currently, non-public development funds are in place. It is estimated that the new Toyama plant will be put into operation in March 2021. In terms of FPC business, the company plans to set up a subsidiary in the Chengdu High-tech Zone to operate a new flexible printed circuit board component (FPCA) project in the Chengdu High-tech Zone. The total investment is planned to reach 200 million yuan. The Chengdu plant will be put into operation by the end of 2020 and achieve considerable profits. Risk warning: the introduction of soft board and IC carrier board customers falls short of expectations, the company's Zhuhai plant starts production below expectations, HDI demand falls short of expectations, competition in the PCB industry intensifies