Matters: The company released its report for the third quarter of 2016. During the reporting period, the company achieved operating income of 203 million yuan, a decrease of 3.1% over the same period last year; net profit attributable to the parent company was 18.02 million, an increase of 40.05% over the same period last year. The company achieved a total operating income of 573 million yuan and net profit to mother of 36.74 million in the first three quarters of this year, up 19.6% and 34.6% respectively over the same period last year. Net profit attributable to the parent company is expected to be 56.8 million to 73.84 million in 2016, an increase of 0% to 30% over the same period last year. Key investment points 1. The company's revenue situation continues to improve. The company achieved operating income of 169 million, 200 million, and 203 million in the first three quarters of this year, respectively, and net profit of 5.23 million, 13.49 million, and 18.02 million. The performance showed a continuous positive trend in the first three quarters of this year. Overall revenue and net profit to mother for the first three quarters of this year increased by 19.6% and 34.6% respectively over the same period last year, indicating that the company's performance had strong growth momentum. 2. Fushun Optoelectronics's charging pile business is progressing rapidly, opening up customer channels and looking forward to more orders. The DC and AC charging piles independently developed by Fushun Optoelectronics were certified by authorities in April, the first order with a total value of 105 million yuan was obtained in August, and another large order worth 210 million yuan was obtained in October. The speed of business expansion exceeded market expectations. The October order first opened up customers in the NEV sector, and customers in more fields are being actively developed. In addition, the company's previous LED product customers also had the ability to operate charging piles, so the company's charging piles are expected to usher in a peak of orders. 3. Differential drone competition has a unique position in the market. The product volume means that Manta Intelligence, a subsidiary of the company, can now form a differentiated competitive situation with DJI through small selfie drones, focusing on S6 drones that are easy to carry, easy to operate, and rich in entertainment functions. It has become one of the first entrants in the small selfie drone market. Currently, the company is rushing up mass production of S6 drones, and product release is just around the corner. According to estimates, the market space for small selfie drones will exceed 20 billion dollars every year. After their unique social properties are fully developed, the market space is expected to further increase. In the future, with the expansion of application scenarios in combination with VR, etc., the market space can reach 100 billion dollars. 4. The profit forecast takes into account the excess of expectations in the charging pile business and the promotion of mass production in the drone business. The company is expected to achieve net profit of 73 million, 121 million, and 168 million yuan in 16-18, corresponding EPS of 0.20, 0.33, and 0.46 yuan, and corresponding PE of 80X, 48X, 34X, maintaining a highly recommended rating. 5. Risk indicates that new business development falls short of expectations.