Key investment events: The company recently issued an announcement stating that the company used its own capital to invest 100 million yuan in cash and set up a wholly-owned subsidiary, Shenzhen Securities and Communications Cloud Computing Co., Ltd., to be responsible for the construction and operation of the company's IDC data center in Shenzhen, which will help to further expand the company's rack scale in the IDC business field, improve the layout of the company's data center in Guangdong, and further consolidate and enhance its business competitiveness. IDC's business is the company's future strategic focus. The company acquired 70% of Yunshuo Technology's shares in 2014, and IDC and cloud computing became the company's core business segments. China's IDC industry is in a stage of rapid development. As the value of data is gradually recognized, the huge stock of data in various industries and a steady stream of new data generated are leading to a rapid increase in demand for data storage. The main business model of IDC's business is to provide server hosting and rental. It is a lower-level IaaS business with low technical barriers, and it is particularly important to achieve large-scale effects. Therefore, the company invested a lot in the initial IDC computer room construction and strived to maintain an industry leader in the number of cabinets. After the computer room construction is completed and put into operation, the performance explosion will be ushered in. At that time, IDC and the cloud computing business are expected to bring the company an increase of 200 million to 300 million dollars in net profit every year. At present, the company's data center construction is progressing steadily. The company has completed the installation of nearly 5,000 cabinets (including about 3,700 in the Nansha data center and 1,000 in the Dongguan data center), and plans to complete the installation of 20,000 cabinets in 2018. The main financial electronics industry has broad scope, and the shift from “hard” to “soft” is a development trend. The company's main products in the financial electronics field totaled about 1 billion yuan in sales in 2015. We expect there is still plenty of room for growth: self-service terminal products are growing well. On the one hand, the shift in banks' basic business to self-service is an inevitable trend, and banks' demand for self-service terminals continues to grow; on the other hand, institutions and companies such as hospitals, lottery vendors and other institutions and companies have also begun to introduce self-service terminals, contributing a lot to the company's sales. In terms of smart POS, benefiting from the rapid development of the third-party payment industry, the company's smart POS machines were released in 2015. Currently, China's POS machine installation situation is far from being saturated, and the company still has a lot of room for growth in this business. In order to cope with the market environment where the integration of the financial industry and the Internet continues to deepen, the company will use payment security technology as a foundation, combine sales of financial electronic products with Internet platforms and big data and cloud computing technology, and transform from manufacturers and sellers of hardware products to software service providers and platform operators. The banking and medical cooperative terminal is a self-service terminal product that the company has launched, which has obtained revenue of 80 million yuan last year; at the same time, the company recently announced that it has invested 30 million yuan in Shenzhen Shengcan Technology. The company will work with the latter to establish a smart business district based on WeChat in Changsha. On the one hand, the company provides smart POS machines to offline merchants within the business district to promote sales of the company's hardware products, and on the other hand, the company participated in the operation of the online smart business district, receiving revenue sharing. Profit forecasts and investment advice. The company's main financial electronics business can still maintain a considerable growth rate. The “hard” to “soft” development strategy will further improve the company's profit structure. In the long run, IDC and cloud computing businesses will guarantee the company's continued growth in performance, so we are optimistic about the company's prospects. It is estimated that the company's diluted EPS in 2016-2018 will be 0.22 yuan, 0.26 yuan, and 0.33 yuan respectively, and the corresponding dynamic PE will be 88 times, 75 times, and 58 times, maintaining the “increase in holdings” rating. Risk warning: The risk of investing more in a new project or making capital turnover difficult.