Key points 1. The largest shareholder plans to increase its holdings, showing full confidence in the company's prospects. The company completed the acquisition of overseas company GD this year, strengthening IT technology accumulation such as cloud delivery and real-time analysis of big data, and expanding overseas markets. At the same time, it plans to take a stake in Zhongtian Antai to provide basic security guarantees for cloud computing and the Internet of Things layout. Wang Weihang, the largest shareholder of the company, is the chairman of the company. This increase in holdings is large, fully demonstrating the management's recognition of the company's long-term investment value and full confidence in the company's continued stable development in the future. 2. It plans to take a stake in Zhongtian Antai. The synergy is remarkable. Previously, the company announced that it plans to take a 10% stake in Zhongtian Antai in cash to expand and improve the layout of the information security field. Zhongtian Antai has core technology in “data black holes” and “reactive platforms”, and has related products and application practices. With its technical advantages, Zhongtian Antai has established good cooperative relationships with various government units, enterprises and institutions such as the Institute of Information Technology of the Chinese Academy of Sciences, the Institute of Railway Research, the State Assets Administration Commission, and Aerospace Science and Technology. The “Cybersecurity Law” is being implemented soon and is having a positive effect on industrial development. This cooperation will help the company expand the field of information security and cultivate new business growth points; at the same time, it also provides security guarantees for the company's layout in the fields of cloud computing and the Internet of Things, and the synergy is remarkable. 3. With the acquisition of GD, future development can be expected 1) Improve channels and deepen international layout: The subsidiary ASL completed a wholly-owned acquisition of GD in April this year and paid US$118 million in consideration. GD's main business is to provide IT services such as omni-channel electronic platform core system development, cloud delivery, and real-time analysis of big data for enterprise customers in the retail, financial, media and technology industries based on open source technology. It can expand the company's business from China and Southeast Asia to the North American and Eastern European markets, help the company integrate advanced global technical information and management experience, and lay the foundation for the company's long-term development. 2) The performance growth rate is obvious, and future development can be expected: GD's 2015 revenue was 8.81 million US dollars, growth rate of 241%, net profit of 5.98 million US dollars, growth rate of 309%. It has a perfect sales network in the North American market, and has established a R&D team with technical strength in the three Eastern European countries. The acquisition will help the company improve the level of relevant technology and reduce development costs. 4. Investment suggestions: The company's shareholding in Tianantai has obvious synergy effects; the acquisition of GD Company has bright room for growth; the largest shareholder plans to increase its holdings, and the company is full of confidence in its operations. The company's net profit for 2017-2019 is estimated to be 1.10, 1.48, and 153 million yuan, respectively, corresponding to PE92X, 68X, and 66X. Covered for the first time, it was rated as an increase in holdings. 5. Risk warning: Domestic business integration results fall short of expectations, and the progress of the holdings increase plan falls short of expectations.