[Key investment event description: On September 24, the company announced that its subsidiary Guangzhou Daling Industrial plans to issue no more than 5.7 million shares at no less than 15.78 yuan per share, and raise no more than 90 million yuan to speed up the implementation of new R&D projects such as VR panoramic cameras, dual camera modules, and single-eye iris recognition modules in the smart terminal field as soon as possible to accelerate the launch of new R&D projects in the automotive electronics front-end business. The event review is as follows: Subsidiaries deploy VR, dual camera modules, and monocular iris recognition to accelerate performance growth. Since the company's listing, the company has been acquiring communication equipment and smart hardware almost every year. Hot sectors such as visual cameras, the Internet of Things, new materials, and graphene have been laid out in recent years, highlighting the company's far-sighted vision in the future Internet of Everything layout. The subsidiary Daling Industrial (51% of shares) is mainly involved in the visual camera business. Since the listing of the national SME share transfer system in January 2016, the focus is on speeding up vehicle cameras (existing customers BYD, BAIC, Zotye and Chery VR) camera equipment “monocular” iris recognition (17 years) ) The promotion and implementation of the three projects. The company's operating income is expected to maintain a growth rate of 40% over the next three years. Considering that 2015 is only half a year, Dafu Technology will significantly benefit from the performance contribution of its subsidiary Daling Technology in 2016 (based on promised profit, we roughly estimate 25 million). The 3.45 billion fixed addition was carried out in an orderly manner, enjoying the explosive dividends of the industry: the company plans to invest 3.45 billion dollars in flexible OLED display modules, USB 3.1 Type-C connector expansion, precision metal structural components, etc. to share the industry's explosive growth dividends: the OLED industry entered the first year of the explosion, but it was mainly used in small-sized smartphones, and was mainly used in small-sized smartphones. Subsequent large-scale tablet, PC, and television space reached 100 billion US dollars. The company's OLED module mask board equipment technology surpassed Korea's HINS and Japan's DNP number one in the world, from Efficiency, quality, and precision solve the important pain points that currently limit the large-scale promotion of OLEDs and low physical resolution. The company first transitioned from mask board equipment expansion to improving upstream equipment materials and other processes, and then was able to seize the trillion-dollar market; looking at connectors, testing, chips, and terminal brand sales, the USB 3.1 Type-C interface has been determined as an important replacement interface for the next generation of USB. Industry consulting predicts that the penetration rate will reach 70% in the next 3 years. The company now has exclusive global tube technology and leading global expansion, stamping, and stretching The process, an exclusive nano-coating process, is one of the few domestic manufacturers that can produce high-quality USB 3.1 Type C connectors. Currently, it has provided mass production support for many of the world's top smart terminal manufacturers. Subsequently, distributors such as strategic partners Yingtang Intelligent Control and Watson Mobile can provide customized and standardized promotion for more brands; whether it is high-end mobile phones or mobile phones under 1,000 yuan, the company's flexible manufacturing advantages using the original RF process common manufacturing platform are conducive to large-scale, batch, and low-cost mobile phone metal structures Piece, share the metal structural parts market is over 100 billion dollars. Strongly build an Industry 4.0 collaboration platform, and the Group's assets are injected in a timely manner: the company is building a closed loop of vertical integration from the client to the manufacturing end under mutual cooperation of the “common mechanical and electrical platform+industrial technical equipment platform+network industrial design platform”. We believe that the company's manufacturing process has completed the upgrade of “flexibility+high-end +diversification” capabilities. Its self-control capability of up to 95% fully guarantees that it can meet the personalized, multiple quality, and large/small batch requirements of different manufacturers; at the same time, the company's external distribution group focuses on building “motion control+drive” The “+ motor” model can be replicated and high-quality assets such as robots (the entire industry chain has been laid out and the predicted growth rate is 60% +), electric vehicles (core components such as raw materials, motors, control systems, drives, etc.), and high-end machine tools (intelligent manufacturing infrastructure and core, subsidiaries listed on the new third board innovation layer) may be injected, and the company's industry 4.0 manufacturing lead is further highlighted. Profit forecast and investment suggestions: Based on the company's main business maintaining the steady growth of traditional RF components, it is optimistic that the company's performance in smart consumer electronics and automotive core components has exploded. In particular, the company's 3.45 billion yuan will increase its efforts to develop mask boards, USB3.1, and metal cases to enjoy explosive dividends in OLED and other industries. At the same time, Daling Industrial raised 90 million yuan to focus on developing VR panoramic/dual camera modules and monocular iris projects to accelerate the company's growth in the fields of cameras, the Internet of Things, graphene, and new materials. In 2016-2018, EPS was 0.45 yuan, 0.47 yuan and 0.60 yuan respectively, and the performance growth rate was 258.61%, 6.45%, and 26.55%. Using the segmented valuation method, communication hardware, smart terminals, and auto parts were given valuations of 200, 61, and 900 million yuan respectively, with a total market value of 27 billion yuan and a target price of 35 yuan, corresponding to PE 74 x in 2017, maintaining the company's “buy” investment rating. Risk warning: fundraising projects fall short of expectations; merger and acquisition effects fall short of expectations; asset injection is slowing