Key investment points: First coverage, “increased holdings” rating, target price of 105 yuan. The market does not know enough about the drivers of future company performance. We believe that in the context of the explosion of the IoT industry, IC distributors with high-quality technical service capabilities will be the first to determine the benefits. The company is a leading authorized IC distributor in China. Its products are mainly communication connection chips and sensors, and will be the first to benefit from the explosion of the industry. The company's 2016-2017 EPS forecast is expected to be 0.48 yuan/0.66 yuan. Considering that the company is a sub-IPO and has definitely benefited from the explosion in the IoT industry, the company is given 8.2 times PS and the target price is 105 yuan, which is 31% of the current price, and a “increase in holdings” rating is recommended. With the implementation of the NB-IoT standard, the company will take the lead as the definitive beneficiary of the explosion of applications in the IoT industry. Communication chips and sensor chips are core components on the IoT terminal side. The beginning of the commercial phase of NB-IoT means that the construction of the Internet of Things has begun to accelerate. This will greatly stimulate demand for communication and sensor chips, and upstream chip distributors with competitive advantages will definitely benefit. As a leading domestic IC distributor in the field of communications and sensors, the company's performance will also be greatly boosted by its advantages in technical capabilities, solutions, suppliers and customer resources in this field. Supplier resources+technical service capabilities build the company's core strengths. The company's suppliers are the world's leading IC design manufacturers, including Qualcomm Atheros, Synopsys, NXP, etc., and product quality, market recognition, and profit levels are guaranteed; at the same time, the company relies on its strong strength in technical support services to ensure the stability of existing customers and strong market development capabilities. Catalyst: The commercialization of NB-IoT standards in specific industries. Risk warning: IoT construction falls short of expectations, and domestic IC market development is slowing down.