Key points of investment: The first coverage gives an “gain” rating. The company is a leader in power chip technology, and its strategic transformation has entered the overseas blue ocean market. We judge that it will soon pass the project investment period and reach a profit inflection point in 2015. EPS is expected to be 0.78/2.66/4.76 yuan in 2014-16. Combining average PE and PB valuation methods, we obtained a target price of 88.85 yuan, which corresponds to 33 times PE in 2015. Future catalysts may include: speeding up the construction process of overseas projects and launching new projects. Overseas projects will usher in a period of profit release, and innovative business models are replicable. Unique understanding: 1) Strategic positioning: The company is actively seeking a new blue ocean market, entering power construction in Africa with China's leading power equipment technology and project experience, actively expanding the industrial chain and experimenting with new business models, transforming from chip manufacturing to overall solutions, in line with the national strategy of “going global”; 2) Business model: Currently, the company has 5 projects in Ghana to create a closed-loop model between the generation side and the power grid side. The win-win cooperation model of “investment-benefit rights sharing” conforms to local conditions, has established a good demonstration effect, and has strong replicability in the future; 3) Profitability: Passed The dual export of technical equipment and capital was far higher than the return rate of domestic projects. After the initial investment preparation period, construction progress accelerated, and a profit release period was about to be ushered in. Special chip for electric power, with deep technical accumulation and strong ductility. The company is a pioneer and leading enterprise of power carrier chips in China. It has more than ten years of technology accumulation and is actively expanding into new downstream fields such as smart cities. Mr. Cheng Yi, the founder of the company, became a major shareholder and further showed confidence in the company's long-term future development by increasing his holdings with fixed increases. Risk warning: Political and economic risks in overseas project countries, risk of exchange rate fluctuations between the US dollar and RMB, and new business development risks such as smart cities.