Event: The company released its 2016 report. The company achieved total revenue of 333 million yuan (22.14%) and net profit of 67.57 million yuan (+13.57%) during the reporting period. The profit distribution plan is 10 to 25 to 1.5. The estimated profit for Q1 2017 is 1492 to 17.16 million yuan (+0 ~ +15%). Based on the “main position” of the logistics industry, we are actively developing mobile applications for the “new retail” industry. The market's main perception of the company includes: 1) The company focuses on the field of informatization in the logistics industry. Market space is relatively limited due to the industry being too segmented; 2) Businesses other than the logistics industry, where the market impression is deep is mainly POS machines, but this business is relatively traditional and lacks novelty. In fact, during the reporting period, in addition to further strengthening the advantages of mobile informatization in the logistics industry, the company also actively opened up new business fields, especially in the retail industry, making major breakthroughs. By integrating existing industry mobile application solutions, a new retail industry mobile application solution and cloud service platform centered on the concept of “new retail” has been comprehensively created, and well-known commercial real estate customers such as Wanda Group have been added. As a reflection at the product level, the smart mobile payment terminal business achieved a total revenue of 93.51 million yuan during the reporting period, with a year-on-year increase of 76.49%, far exceeding the 30% growth rate of the POS industry itself and leading the company's various business lines. In addition to the “new retail” industry, the company has also expanded a series of high-quality customers in other fields such as Zhongshan Hospital affiliated to Fudan and Sanyuan Foods in other fields such as medicine and food. The expansion of the marketing network covers the whole country, and the SaaS business model is further explored: 1) On top of the scale of the existing marketing service network, the company plans to further expand marketing service centers in many places and build a marketing service network covering the national market based on marketing service centers. 2) Expand the mobile application operation service business and gradually shift to the role of a mobile application operation service provider (SaaS) to develop and build an operation service platform suitable for various industries, expand the company's business model, and seek to achieve “cloud transformation”. The pace of internationalization is expected to accelerate, with the power of the capital market to expand volume: 1) Since smart mobile terminals have strong national and regional versatility, in 2017, the company will focus on expanding the international market on a domestic basis. 2) After entering the capital market, the company will focus on its core business, make full use of the power of capital, and expand in various forms such as mergers and acquisitions, investment, and cooperative development to enhance scale and overall competitiveness. “Prudent Recommendation-A” rating: Optimistic about the company's dominant position in the field of mobile applications in the industry. The EPS from 2017 to 2019 is expected to be 1.22, 1.51, and 1.86 yuan respectively, and the current price corresponds to 71/58/47 times PE. Considering the high overall valuation level of sub-IPOs, the “Prudent Recommendation - A” rating is maintained. Risk warning: Downstream industry demand growth rate falls short of expectations; strategy execution falls short of expectations