We have a SELL rating on Guoxuan High-Tech with a target price (TP) of Rmb11.00. Our TP is based on a target 2019E PER multiple of 13x (1.3x PEG). The poor earnings growth recovery outlook should put its share price under pressure in 2019. We will adjust our TP after we revise our numbers after the release of its 2018 and Q1 2019 results.