Incident: The company used 8.175 million yuan of its own capital to purchase 2.18 million shares of Suzhou Qianshitong held by Suzhou Ronglian and Yao Lingzhong, accounting for 10.90% of Suzhou Qianshitong's shares. Comment: Maintain an increase in holdings rating, with a target price of 45 yuan. We maintain the company's profit forecast. The EPS for 16/17/18 is 0.24 yuan/0.34 yuan/0.44 yuan, respectively. The company has an active layout in the field of artificial intelligence, and the 3D face recognition and virtual reality business are extremely competitive. This investment in Qianshi is even more likely to accelerate the progress of smart city business and maintain an increase rating of 45 yuan, corresponding to 132x PE in '17. The company invested in Qianshitong to lay out video big data, and its ability to expand business areas and implement execution exceeded market expectations. Qianshitong has a research and development team composed of many experts in the field of computer vision and graphics research who have graduated from famous universities in Hong Kong and China. Mr. Li Zhiqian, the company's chairman and general manager, has been engaged in the exploration and application of video technology for more than 20 years. He was the general manager of the ZTE video product line and the deputy director of the Shenzhen Research Institute. Since then, he has worked at the Hong Kong Institute of Applied Science and Technology for 10 years, serving as a deputy director of R&D, specializing in video big data theory research and application development. Qianshitong's talent pool and technical strength are leading. Qianshi is based on core video big data technology and has the ability to provide complete industry solutions. Qianshitong is engaged in cutting-edge research on big data theory to video application algorithm development, and combined with customer needs in the public security industry to form the R&D and production process of video software products. It has mature experience and applied products tested in practice in the fields of deep learning algorithms, video image processing, video summarization, video data structuring, video search, and video analysis. Currently, the solutions cover various industries such as public security, transportation, finance, energy, administration of justice, culture, education and health. Investing in Qianshi forms effective collaboration with the company's identification technology and products, which is expected to accelerate smart city business expansion. Qianshitong is committed to products such as image detection, video retrieval, and video structured systems, and has begun promoting solutions in related industries. Its intelligent video search technology, along with the company's existing intelligent face recognition and vehicle recognition technology, can form market-competitive products that help accelerate the company's urban intelligent system business layout, which in turn drives rapid revenue growth. Risk Warning: 238 million military air traffic management project implementation risk; brain drain risk