Performance is growing steadily. The company's 2016 revenue was 594 million yuan, up 46.45% year on year, net profit was 56.92474 million yuan, up 28.08% year on year, net profit after deduction of 488.25,900 yuan, up 21.36% year on year. China's leading industry software and big data solution service provider. Its main business is industry application software research and development, IT solutions and information technology services. In recent years, the company's industry software gross profit margin is 60%, comprehensive gross margin exceeds 30%, and core products have high technical barriers. Based on industry software development, we actively develop intelligent operation platforms and gradually penetrate into the operation process. In 2016, the company's industry application software accounted for 51.70% of revenue and a gross profit margin of 59.01%. The company is a core supplier of software for the telecommunications and power industry, and is also involved in fields such as financial asset management software. In the future, industry application software will choose 2-3 market segments to strengthen and expand, establishing a leading position in the industry. At the same time, we will strengthen research and development of key big data technologies and products, explore industry big data applications, develop big data application platforms, government precision management big data platforms, credit big data platforms, intelligent early warning systems for equipment faults, smart light pole IoT platforms, industry user data warehouses, etc., develop new big data application formats, actively grasp big data operations, and gradually deepen operational cooperation with local governments. Driven by Internet+ innovation. On the basis of the existing Internet+smart logistics cloud service platform, the “Internet +” business segment will further use artificial intelligence and IoT technology to achieve the deep integration and development of information technology, logistics and finance, build a trustworthy capacity pool, build a supply pool, build a complete logistics ecosystem for cargo owners, logistics companies, car owners, etc., and provide shippers and carriers with comprehensive services of “car-free transportation services+data financial services+logistics informatization services”, making the entire logistics industry intelligent. We expect that in 2017, the company's “Internet+Smart Logistics Cloud Service Platform” will experience a geometric increase in revenue through operating services, and that its performance contribution will lag slightly behind. Intelligent software will be the convertor of the company's development strategy. Based on the deep technology and application advantages accumulated in the field of industry application software, the company will use big data collection, storage, analysis, mining, machine learning, knowledge acquisition, adaptation, pattern recognition and other technologies to provide users in telecommunications, energy, transportation, finance, government and other industries or fields with big data platforms, analysis and decision-making software, intelligent application software, etc., seize the high ground of intelligent software in the era of artificial intelligence and become a leader in the field of intelligent application software. Furthermore, the high-trust software project in collaboration with the Chinese University of Science and Technology will continue to advance in 2017. A combination of endogenous epitaxial extension. On March 14, the company disclosed that Chairman Dong Yongdong resigned as general manager to focus on his duties as chairman, and the deputy general manager took over as general manager. The optimization of the management structure will bring about certain adjustments to the company's management strategy and capital strategy. The company's annual report discloses that “the combination of endogenous growth and epitaxial growth promotes the rapid development of the company”. We expect the company to focus on endogenous growth and actively pay attention to high-quality epitaxial opportunities in the future. Profit forecasts and investment advice. The company's main business is based on steady growth and penetration into platforms and operations. The revenue of the Internet+Smart Logistics Cloud Service Platform is expected to grow exponentially in 2017. In addition, the company's forward-looking intelligent application software will also achieve significant results. It is estimated that the company's net profit for 2017-2019 will be 0.79/1.10/148 million, and the EPS will be 0.82/1.14/1.54 yuan respectively. Based on the company's accumulated advantages over the years, the industry's software field has blossomed, and the emerging layout is also constantly being improved, giving it a valuation of 116 times in 2017 and a target price of 95 yuan for six months, covering the first time, giving it an “increased holdings” rating. Risk warning. Competition for software in the industry has intensified, new businesses have fallen short of expectations, and the market has fluctuated in the short term.