Guide to this report: The strategic position is clear, and it is committed to becoming the leading provider of comprehensive information technology and multimedia video services and solutions in China. The proposed acquisition of NetRunjet will accelerate the implementation of the strategy. Investment points: Maintain an increase in holdings rating, with a target price of 103.67 yuan. The company's 2016/2017/2018 EPS was 0.91/1.12/1.4 yuan respectively. Considering the company's clear strategy and the good synergy between the acquisition of NetRunjieke and the original business, the target price was 103.67 yuan, corresponding to 115 times PE in 2016. The increase in R&D investment temporarily dragged down the growth rate of performance. The company achieved revenue of 345 million yuan, a year-on-year increase of 26.87%, and net profit of 32.21 million yuan, a year-on-year increase of 5.21%. The performance was in line with our expectations. Revenue increased 26.87% year over year, mainly driven by a sharp increase in revenue from data center systems and production monitoring and emergency command systems; the company's gross margin level was generally stable; the sales expense ratio decreased by 0.25 percentage points compared to the same period last year; and the management expense ratio increased 0.63 percentage points compared to the same period last year, mainly due to an increase in R&D expenses. The strategic positioning is clear, and the growth momentum is more sufficient. Relying on its competitive advantages in the multimedia video field, the company will combine advanced technologies such as cloud computing and big data with the company's traditional business to actively expand new businesses such as cloud data centers, the Internet of Things, VR\ AR and simulation systems. At the same time, the business model will add cloud operating platforms, integrated services, etc., to create a leading domestic provider of integrated information technology and multimedia video services and solutions. With the proposed acquisition of NetRunjieke, the cloud computing strategy has begun to be implemented. The company plans to acquire NetRunjet for 400 million yuan. NetRunjieke has great advantages in cloud computing and cloud services, and is expected to help the company expand its multimedia video system and cloud computing business. The company's “multimedia video+cloud computing” business layout has taken shape, and subsequent operations are worth looking forward to. Risk warning: NetRunjieke's mergers, acquisitions and restructuring progress is lower than expected; risk of industry policy changes