Key investment points 1. The company has been working to optimize the network market for many years. Since its establishment, the company has been mainly engaged in communication network maintenance services, while also providing communication network optimization services for some customers. The main customers include telecom operators, communication equipment suppliers, radio and television operators, the military and municipal departments. The annual revenue scale is expected to be over 300 million, and the net profit is expected to reach 63 million. 2. Competition in the industry is intense, and the downward pressure on gross margin is remarkable. Relevant peers are shifting China's communication network management service market concentration is low. Companies affiliated with telecom operators such as China Communications have a large market share, and third-party professional communication network management service companies are all small in size, and are often concentrated in specific regions. At the same time, upstream customers are mainly the three major operators. Price competition pressure is increasing, and the overall gross margin of the industry is on a downward trend. Currently, many companies in the industry are opening up second main businesses, such as Huaxing Entrepreneurship Transforms IDC Operations, Yitong Century Transforms the Internet of Things, and Century Dingli Transforms Education. 3. Investment advice: The network optimization industry the company is currently in is fiercely competitive. It is expected that the market concentration will continue to increase in the future, waiting for the gross margin level to stop falling and pick up. With this IPO, the company publicly issued 17.53 million new shares at 10.26 yuan per share, raising net capital of 147.012,68 million yuan. It plans to implement three projects: a communication network technology service platform construction project, an R&D center construction project, and supplementary working capital. The future progress of the project remains to be seen. We forecast the company's EPS for 2016, 2017, and 2018 to be 0.63, 0.74, and 0.77, respectively. The corresponding PE is 98x, 83x, and 80x. Considering the IPO factors, the valuation is relatively expensive. For the first time, it is covered, and recommended ratings are given. 4. Risk warning: (1) The valuation level is high; (2) the level of competition in the industry will continue to deteriorate in the future.