Investment highlights: The company was recently researched. Ping An's view: “Network application audit expert”: The company is one of the earliest enterprises in China involved in the field of network information security, and is committed to providing network behavior audit and content supervision products for state management agencies, operators, enterprises and institutions. It participated in the formulation of 5 standards for the network information security industry by the Ministry of Public Security, the Ministry of Industry and Information Technology, etc., has more than 40 national-level core technologies, undertook research and development on more than 30 major national-level topics, and was hailed as a “network application audit expert” by the industry. China's online content and behavior audit and supervision market is developing rapidly: in 2010, China's online content and behavior audit market was only 640 million yuan; in 2015, the market size is expected to reach 2.18 billion yuan, with an average compound annual growth rate of 27.22%. In the future, network behavior and content security issues will become particularly prominent: with the continuous growth of Internet applications and the popularity of Internet users, and the rapid development of software-as-a-service cloud computing and “Internet +,” both the Internet computer room end and the user's broadband access end are developing at a rapid pace. In the future, the security issues of network behavior and content will become particularly prominent. With the establishment of a national security strategy in 2015, supervision will be further strengthened, keeping the prosperity of the information security sub-industry of Internet information supervision and public opinion monitoring at a high level. The rapid development of the mobile Internet has made behavioral auditing of mobile terminals, as well as identity verification and traceability, the focus of promotion of government public security network monitoring services: the traceability of public opinion supervision and content supervision must be rapidly expanded to the mobile Internet. The main challenges in auditing the behavior and content of mobile terminal devices are that (1) mobile terminals are connected to the Internet, which is difficult to locate; (2) the real-name system is difficult to implement, and traceability is difficult to implement. This regulatory demand has brought market space for products with wireless and mobile Internet behavior auditing and identity verification functions. First coverage, giving a “recommended” rating: At the policy level, the company benefits from the country's emphasis on information supervision and public opinion supervision. As the only listed company in the network application audit security sub-industry, the company is in the midst of the current market trend and context where Internet applications continue to develop rapidly, infrastructure is iteratively upgraded, and mobile Internet content and behavioral supervision are urgently needed to fill gaps. With 15 years of accumulation in technology, products, and customer resources, the company will definitely have a head start. The company's revenue for 15-17 is estimated to be 493, 9.87 and 1,259 million yuan, and EPS for 15-17 is 0.21, 0.47, and 0.61 yuan, respectively. Corresponding to the closing price on January 27, and PE in 15-17, 126.5, 58.3, and 44.6 times, respectively, coverage for the first time, giving it a “recommended” rating. Risk warning: Investment in mobile terminal regulation falls short of expectations.