The company is a leading smart city service and operator in China, focusing on smart city top-level design, smart medical care, smart energy saving and other professional fields. The controlling shareholder of the company is Shanghai Yanhua Hi-Tech, which holds 17.94% of the company's shares. Mr. Hu Liming is the actual controller and holds a total of 36.4% of the shares. Driven by the two wheels of deepening business transformation and expansion of external mergers and acquisitions, the company's performance has made great progress. The CAGR of net profit attributable to shareholders of listed companies in 2012-2015 reached 80.2%, and the net profit growth rate in 2015 reached 77.4%. Smart cities are in the stage of rapid construction and operation, and smart energy saving and smart medical care are key areas for their development. By the end of 2014, more than 400 smart cities had been built in the country. The average growth rate of smart city investment in 2016-20 can remain above 18%, and the total investment scale can reach 2 trillion yuan. Smart healthcare includes work such as standardizing information systems for large-scale general hospitals and establishing national electronic health records and regional medical informatization platforms. It is estimated that the CAGR invested in the next five years will reach 20%. The government's “13th Five-Year Plan” proposes comprehensive energy conservation and efficient use, and implementation of contract energy management. According to estimates from the Energy Conservation Industry Association, the energy saving service industry will maintain an annual growth rate of 30% over the next ten years, and there is broad scope for industry development. Use Chengdian Medical Star to build a leader in smart hospitals. The company completed the equity acquisition of Chengdian Medical Star in 2015, improving the core industry chain of green smart hospitals. Chengdian Medical Star has close to 2,000 hospitals across the country, and has successfully carried out smart medical care and informatization of regional population health in 6 regions. The company will build a hospital information system based on cloud and big data technology to build a whole industry chain ecosystem. The Chongzhou Smart Healthcare Project and Changchun Elderly Care Integrated Cloud Platform Project, which have already been implemented, are the best examples of the company building smart medical care. The company will rely on the existing, extending from hospitals to regional healthcare to city-level smart healthcare ecosystems. There is a solid foundation for monitoring energy consumption in buildings, and the smart energy saving business is expected to explode. The company is a leader in online monitoring and data application of building energy consumption in Shanghai, and won the top ten energy saving service brands in the construction sector in 2015. Currently, there are more than 400 large-scale buildings (over 20,000 square meters) that have achieved energy consumption monitoring, and their owners are all potential customers of the company's smart energy saving business. The company can provide comprehensive energy-saving management and services throughout the life cycle of buildings. Through energy consumption monitoring, big data mining and energy saving consulting, energy saving transformation is carried out, and energy saving operation and maintenance management of facilities is provided. Profit forecast and valuation: Forecast the company's 2015-17 EPS of 0.14/0.21/0.31 yuan, YOY 79%/49%/48%, and three-year CAGR of 56%. Considering the high growth of the company and the valuation of the smart medical sector (62X in 2016), we gave the company 55-60 times PE in 2016, with a reasonable valuation range of 11.6-12.6 yuan. First coverage, giving a “buy” rating. Risk warning: Smart medical business development falls short of expectations, smart energy saving business development falls short of expectations