Investment highlights: Events: The company released its report for the first quarter of 2017. During the reporting period, it achieved operating income of 168.1463 million yuan, a year-on-year decrease of 6.66%; net profit attributable to shareholders of listed companies was 31.3942 million yuan, an increase of 30.54% over the previous year. In the face of a slight year-on-year decline in operating income, net profit still increased by a large proportion. The main reason was that during the reporting period, the increase in demand for wireless network testing instruments from telecom system providers, the decline in sales expenses, and the year-on-year increase in government subsidies. The communications business is growing steadily and is actively expanding in the direction of the Internet of Things and big data. In 2017, on the basis of maintaining business stability, the company will actively expand applications for the IoT industry to achieve deep integration between the ICT industry and traditional industries. For this reason, in 2016, the company announced that it plans to acquire 100% of the shares of One Core Intelligence. Currently, the fixed increase plan has been accepted by the Securities Regulatory Commission. In the same year, the company announced that it plans to use overraised capital of 233 million yuan to invest in the construction of an IoT industry incubation base. Through the external layout and effective allocation of internal resources, the company continues to improve product functions, enhance efficiency, and achieve profit improvement. The vocational education business continues to expand, and Dingli College's model upgrade performance can be expected. In 2017, the company plans to speed up the layout of Dingli College and build 15-20 new Dingli Colleges, 5 of which are Sino-foreign cooperative Dingli International Colleges, to achieve the 2.0 upgrade of Dingli College. At the same time, the company will increase investment in education research institutes to ensure the high quality management and operation standards of Dingli University. In terms of extension, in order to more directly introduce employment and industrial needs into the field of vocational education and enrich and introduce advanced vocational education curriculum content, during the reporting period, the company once again increased capital for the participating company, Beijing Jianomunde Education Consulting Co., Ltd., and held 55.74% of its diluted shares and became its controlling shareholder. We believe that with the national policy's support for the integrated obstetrics and education project, the company's vocational education business demand is expected to rise rapidly. After the large-scale layout, long-term performance is expected to improve markedly. Investment recommendations and performance forecasts: 2016 was a successful year in the century. Revenue and profit increased moderately, and various layout results and operating indicators were impressive. In the first quarter of 2017, the net profit of shareholders of listed companies was RMB 31.3942 million, an increase of about 30.54% over the previous year, achieving a good start. The state's policy support for the industry-education integration project, and now that the scale of cooperation between Dingli University is advancing, the company's education equipment business demand is expected to heat up rapidly. In the medium to long term, after experiencing a period of layout and climbing, Dingli University will bring significant added value to the company's performance. The company's internal and epitaxial growth logic is clear. It uses overfunded capital to build the Sino-German International School and the Internet of Things incubation base project, and invests in Jianomunde. The epitaxial layout continues to increase, the strategy is clear, and execution is strong. We continue to be optimistic about the company's high-quality genes and historical opportunities to apply practical vocational training in ICT and other applications. The company's cooperative model of running schools based on applied courses addresses the pain points of higher education and has a first-mover advantage. After maturing, Dingli College is expected to accelerate replication and become a new driving force for performance growth. We forecast the company's net profit in 2017-2018 to be 183 million yuan and 274 million yuan respectively, corresponding to EPS of 0.37 yuan and 0.55 yuan respectively. Based on the valuation level of the same industry, 41 times PE was given in 2017, corresponding to the target price of 15.17 yuan/share, maintaining the buying rating. Risk warning: Outreach layout, progress of Dingli University falls short of expectations, market risk and business risk, etc.