Unique opinion: Since its establishment, the company has mainly engaged in communication network maintenance services, while also providing communication network optimization services for some customers. The main customers include telecom operators, communication equipment suppliers, radio and television operators, military and municipal departments, etc. Annual revenue is expected to be over 300 million yuan, and net profit is expected to reach 63 million yuan. The market concentration of communication network management services in China is low, enterprises affiliated with telecom operators, such as China Communications, occupy a large market share, and third-party professional communication network management service enterprises are all small in market size, and are often concentrated in specific regions. At the same time, since upstream customers are mainly the three major operators, price competition pressure is increasing, and the overall gross margin of the industry is in a downward trend. Investment points 1. The company has been working to optimize the network market for many years, and has been steadily promoting the company since its establishment, mainly engaged in communication network maintenance services, while also providing communication network optimization services for some customers. The main customers include telecom operators, communication equipment suppliers, radio and television operators, military and municipal departments, etc. Annual revenue is expected to be over 300 million yuan, and net profit is expected to reach 63 million yuan. 2. Competition in the industry is fierce, and the downward pressure on gross margin is significant. Relevant peers are transforming China's communication network management services market concentration one after another. Companies affiliated with telecom operators, such as China Communications Service, have a large market share, and third-party professional communication network management service enterprises are all small in market size, and are often concentrated in specific regions. At the same time, the upstream customers are mainly the three major operators. Price competition pressure is increasing, and the overall gross margin of the industry is in a downward trend. Currently, many industry companies are opening up second main businesses, such as Huaxing Entrepreneurship Transformation IDC Operation, Yitong Century Transformation Internet of Things, and Century Dingli Transformation Education. 3. Investment advice: The network optimization industry in which the company is currently located is fiercely competitive. It is expected that market concentration will continue to increase in the future, and wait for the gross margin level to stop falling and pick up. With this IPO, the company publicly issued 17.53 million new shares at 10.26 yuan per share, raising a net capital of 147.0126.68 million yuan. It plans to implement three projects: a communication network technology service platform construction project, an R&D center construction project, and additional working capital. The future progress of the project remains to be seen. We predict that the company's EPS for 2016, 2017, and 2018 will be 0.63, 0.74, and 0.77, respectively, and the corresponding PE will be 98x, 83x, and 80x. Considering the IPO factors, the valuation is relatively expensive. It was covered for the first time, and a recommended rating was given. 4. Risk warning: (1) the valuation level is high; (2) the intensity of competition in the industry will continue to worsen in the future.