Event: The company released its 2016 performance report and achieved net profit attributable to shareholders of listed companies of 73.88 million yuan for the whole year, compared to 108 million yuan in the same period last year, a decrease of 32% over the same period last year. The performance is within the previous forecast range and is generally in line with expectations. Due to intense competition in the Internet Premium market, the performance of the main business has declined, and the construction of operator networks has accelerated. The scale of the company's Internet Premium main business has expanded. The company's annual revenue was 1.31 billion yuan, an increase of 2.2% over the previous year. However, due to intense competition from Internet Premium, contract prices fell year over year, and the company's overall gross margin declined. In addition to increasing current costs and expenses for constructing new office buildings and paying intermediary fees for planning and restructuring matters, net profit ultimately declined. We believe that in the future, the network optimization industry will tend to be centralized, and the company, as a leading network optimization enterprise, will benefit from increased market concentration. In the future, revenue will continue to grow, but competition will be fierce, and the long-term profit of this business will stabilize. Internet Harbor carries the transformation players. IDC Cloud Computing continues to push Internet Harbor's 51% equity acquisition has been completed, promising net profit of 40.5 million yuan, 69 million yuan, and 93 million yuan for 16-18 years. The Internet port business is expanding smoothly. Currently, the number of cabinets is about 6,000. It has reduced operating costs through DCI transformation of data centers and SDN between urban areas, while actively optimizing the customer structure to enhance bargaining power. Products and services continue to maintain high gross profit margins. We believe that its technology deployment is in line with the development direction of cloud computing, and we are optimistic about its growth prospects. The founder of Internet Harbor is expected to actively participate in the company's management company. The company completed the 51% equity acquisition of Internet Harbor by the end of 2016, and Ren Zhiyuan, the founder of Internet Harbor, is expected to actively participate in company management in the future. This will inject new vitality into the company and bring new room for imagination to advance the company's strategy and transformation. Maintaining the “increased holdings” rating, the target price is 14 yuan, and the company's 2016-2018 EPS is expected to be 0.17 yuan, 0.30 yuan, and 0.35 yuan respectively, and the corresponding PE is 60X/34X/29X respectively. We are optimistic about the company's IDC+DCI+SDN+ hybrid cloud cloud cloud service layout and maintain the “increase in holdings” rating, with a target price of 14 yuan. Risk warning: The risk that the target company's profit falls short of expectations, and the risk that new business development falls short of expectations.