The performance slightly exceeded expectations. The company announced that revenue in the first half of the year was 164 million yuan, an increase of 10.20% over the same period last year, and net profit was 28.34 million yuan, an increase of 19.62% over the same period last year, higher than the previous forecast range of 5.53% to 18.19%.

Lu an century and watch, effectively thicken the performance of the company. In the first half of the year, Luan Century, a wholly-owned subsidiary of the company through major asset restructuring and acquisition, added revenue from hotel and home media services, which reached 44.77 million yuan in the first half of the year, accounting for 27% of the operating income. In addition, the gross profit margin of the hotel and home media services business in the first half of the year was as high as 61.45%, effectively driving the overall gross profit margin to 35.15%, an increase of 8.7 percentage points over the same period last year. Lu an Century promised that the deduction of non-net profit for 2016-2017 would not be less than 42.5 million yuan and 53.5 million yuan respectively.

There are plenty of orders on hand, and the growth of performance in the second half of the year is guaranteed. The company reported that as of June 30, 2016, the company's outstanding orders were 387 million yuan, compared with 167 million yuan in the same period last year. The company's orders-on-hand increased significantly compared with the same period last year, laying the foundation for performance growth in the second half of the year.

Committed to becoming a leading provider of integrated solutions for marketing applications based on Internet +. The company's IaaS cloud data center construction business focuses on network resources, computing resources, storage resources, information security, virtual security, big data and security and development and integration of customers' customized needs; with the transformation of client business to Internet +, especially the transformation of banking and insurance industry to electronic financial channels and financial Internet, the company's marketing information platform business is growing steadily. After the acquisition of Luan Century, the company has also expanded its hotel and home media services, with significant synergy.

Investment advice: Luan Century and table, effectively thicken the company's performance, sufficient orders on hand, the performance in the second half of the year is guaranteed. It is estimated that the EPS for 2016-2017 will be 0.57 yuan and 0.66 yuan respectively, with a "buy-A" rating for the first time and a six-month target price of 45 yuan.

Risk hint: industry competition intensifies.