Main views 1. Performance is growing steadily. The V-shaped reversal confirmed that the company achieved operating income of 346 million yuan in the first quarter of 2017, an increase of 33.43% over the previous year; net profit of 7.8 million yuan was 7.8 million yuan, an increase of 23.35% over the previous year. After a period of slump that began in 2015, the company has successfully achieved a bottoming out in business. In 2016, it achieved revenue of 1,415 billion yuan, an increase of 10% over 15 years, and a rapid increase in net profit of 96%. We believe that with the adjustment of the company's business structure, boosted by the steel structure business, especially the overseas steel structure business, the inflection point of the company's performance has reached an inflection point, and the V-shaped reversal has been confirmed. 2. The business structure is continuously optimized to welcome growth in performance. With the adjustment of the company's business, the steel structure business continues to grow, and its international status has been recognized. The company's equipment and steel structure business achieved growth of 56.11% in the previous year, accounting for 37% of the business, of which overseas revenue was 287 million yuan, an increase of 100% over the previous year. The company has set the goal of becoming an integrated system provider for the industrialization of green buildings, integrating systems such as steel structures, prefabricated PCs, and internal partitions, and transforming from a single steel structure manufacturer and installation manufacturer to an overall building system and building materials provider. Lightweight wheels for the company's cars are expected to be released. The company has now developed a full range of lightweight wheel products based on traditional wheels. The product quality and performance have all reached international standards. They have passed the US Smith Laboratory tests and met the lightweight requirements for high-end truck and bus wheels in Europe and the US. With the trend of new energy vehicle weight reduction, this field is expected to benefit from the release of new energy vehicles. At present, this series of lightweight products has been used in new energy vehicles of brands such as Changjiang, BYD, and Jinlong. The automotive aftermarket business layout continues to advance, and steel ring products continue to break through. Over the past year, the company's Internet+ automotive aftermarket layout has continued to advance in commercial vehicle aftermarket, intelligent hardware, and O2O platforms. The R&D design of smart steel ring 1.0 software and hardware products has been completed, and the implementation of applications has begun. The company also cooperated with Luntekos to enter the Japanese parking plant system and improve the technical level of its own manufacturing process. 3. Taking advantage of Haixi, it is expected to benefit from the “Belt and Road” strategic company located in Xiamen, Fujian Province, and its products have outstanding advantages in going overseas. Over the past three years, the company's share of overseas business has continued to increase. Last year, it achieved a 32.44% increase in overseas revenue, accounting for 52.27% of its main business revenue. The advancement of the Belt and Road strategy will drive industrial development in developing countries along the route, and steel structures, which are the foundation for the construction of factories, offshore oil and gas fields, and petrochemical projects, etc., will usher in an increase in demand. Furthermore, considering the countercyclical investment layout characteristics of overseas petroleum, chemical and other projects, demand for overseas equipment and steel structures will continue to rise. We believe that with the advancement of the Belt and Road strategy, industrial development in relevant regions will drive demand for steel structures, and the company's steel structure products are expected to seize market opportunities with their overseas location advantage. 4. Investment advice: We predict that from 2017 to 2019, the company's net profit will be 1.10, 1.60, and 223 million yuan, and the EPS will be 0.16, 0.23 million yuan, and the EPS will be 0.16, 0.23, and 0.32 yuan, corresponding to the current stock price PE of 35, 24, and 17 times, giving it a strong rating. 5. Risk warning: Overseas steel structure business expansion falls short of expectations; business expansion such as wheels and steel rings falls short of expectations; automotive aftermarket growth falls short of expectations; and the progress of the Belt and Road policy falls short of expectations.