Summary of core conclusions: In the future, Han Wang drawing boards and painting screens will be more competitive in the market than Wacom. We believe that Hanwang's digital painting business integrates 8192 level electromagnetic touch technology and has technical advantages; compared to Wacom, Hanwang's product positioning, pricing, and sales channels have a competitive advantage; Han Wang is more suitable for painters to use in terms of pressure sensitivity levels and shortcuts, etc., and is more suitable for painters. iPad cannot replace drawing boards or screens, and it is expected that the market share of Han Wang painting boards and screens will expand further in the future. 1) Will iPad and Pencil replace drawing board and screen products in the future? We don't think iPad and Pencil will replace drawing boards and screens. In terms of price, the Han Wang painting board painting screen has a price advantage. In terms of positioning, the iPad is positioned for educational and commercial purposes. The drawing board and painting screen are specially designed for painting enthusiasts and are not intersectional. In terms of performance, the Han Wang pen has a pressure sensitivity level of 8096, and the maximum pencil is less than 4096. The shortcuts on the drawing board and screen are more suited to the needs of painting enthusiasts. 2) What is the difference between Han Wang and Japan's leading product positioning Han Wang has an advantage in product positioning and pricing. Hanwang was the first to open up the consumer market. The price of products with the same performance was lower than that of Wacom, and it had a price advantage. Second, the consumer market has a lot of room for growth, and Han Wang has a first-mover advantage. 3) What is the difference between Hanwang Technology and Japan's leading Wacom channel? First, Hanwang Technology focuses on online marketing channels, cooperates with cross-border e-commerce, and products are mainly sold overseas, and Wacom is mainly sold through offline channels. This year, it was greatly affected by the pandemic and competitors, as reflected in a 1% decline in performance in FY2020. At the same time, the share of branded business revenue fell to 47% as a result. Second, Hanwang's online sales improved overall performance. Hanwang's 2020 H1 net profit margin was 10.22%, and Wacom's net profit margin was 6.6%. Investment suggestions: We expect the company's revenue to reach 16.18, 23.07, and 3,018 billion yuan respectively in the next three years, and EPS of 0.68, 1.03, and 1.47 yuan/share, respectively. Combining the future P/S level of comparable companies, the company's AI business was given 5 times P/S in 2021. The consumer electronic painting business had huge room for growth. The company's consumer electronics business was given a target price of 45.48 yuan/share corresponding to 26PE in 2021, maintaining the buying rating. Risk warning: Overseas market expansion falls short of expectations; product innovation falls short of expectations.