Incident: On August 21, 263, a semi-annual report was released. During the reporting period, the company achieved operating income of 414 million yuan, an increase of 16.74% over the previous year; net profit of 85.62 million yuan, an increase of 43.33% over the previous year. Net profit after deduction was 15.35 million yuan, a year-on-year decrease of 74.37%. The increase in the company's revenue mainly comes from business related to corporate communications. At the same time, due to increased investment in new business, non-net profit declined sharply. The sharp increase in overall net profit was mainly due to the investment income of approximately RMB 63.55 million for Exhibitor Interactive. The company's semi-annual revenue and profit situation is in line with our previous expectations. Investment points: Market views generally focus on the decline in the profits of the company's main business, while ignoring the company's accelerated layout in corporate communications and personal communications services. We believe that this year's accelerated investment will definitely lay a solid foundation for the company's long-term development. Benefiting from increased demand for enterprise cloud communication services and personal outbound travel communication services, the company's development is expected to exceed market expectations. Reasons: (1) The company's business revenue has increased dramatically, and market expansion has accelerated. In the first half of the year, the company announced a new 263 cloud communication enterprise-grade SAAS strategy, achieving enterprise business revenue of 173 million yuan, a sharp increase of 39.25% over the previous year. Currently, the market demand for webcasting and corporate conference services is strong, and the company's corporate business is expected to achieve rapid growth. (2) The layout of personal business is speeding up, and the scale of the MVNO ecosystem is gradually showing. In terms of MVNO (virtual mobile communication) business, in the first half of the year, the company reached cooperation agreements with many well-known domestic and foreign mobile phone manufacturers such as Samsung, Xiaomi, and LeTV, and realized the SoftSIM card layout. At the same time, the company has also established cooperative relationships with nearly 40 domestic and foreign operators, channel providers, etc., and the MVNO ecosystem has been gradually established. (3) Active investment accelerates the improvement of comprehensive strength, and business development is expected to exceed market expectations. In the first half of the year, the company invested 82.1 million yuan in R&D, a sharp increase of 74.71% over the previous year, accounting for about 20% of revenue. Behind the large investment, the company's rapid growth in corporate communications and personal communications will also be further strengthened. Currently, the cloud computing industry is developing rapidly, and demand for personal outbound travel is strong. The company's subsequent business progress is expected to exceed market expectations. Continue to maintain the “Highly Recommended” rating. In the first half of the year, the company further enhanced its comprehensive strength in corporate business and individual business through active investment. With the acceleration of market demand and the continuous opening of business models, the company's corporate and individual businesses are expected to usher in rapid development. The company's EPS for 16-18 is expected to be 0.21, 0.27, and 0.39 yuan, and the PE corresponding to 16-18 is 71.99x, 55.91 x, and 38.58x, respectively. Give it 90 times PE for 16 years, and the target price is 18.9. Risk warning: business development falls short of expectations, market competition exceeds expectations