Key investment points: Maintain an increase in holdings. The company's 2015 revenue was about 1.12 billion yuan (+35.3%) and net profit was about 102 million yuan (+76.5%), which is basically in line with expectations. Considering that the company's intelligent engineering business is developing well, and Chengdian Medical Star's net profit in 2015 was 2.24% higher than promised, maintaining the company's 2016/2017 EPS of 0.18/0.23 yuan. Considering that the company's smart medical care is speeding up the pace of entry into the field of big health management and the solid advancement of the smart energy saving layout, equity incentives bind employee interests to company interests, and at the same time refer to the current valuation level of comparable companies, maintain the company's PE 69.5 times that of 2016, maintain the target price of 12.5 yuan, and increase the holding rating. Operating cash flow remained stable, and net interest rates increased significantly. In 2015, 1) The company's net operating cash flow was 80.5 million yuan (+0.43%), which remained stable, with a payback ratio of 78.3% (-16.3pct), and repayment work needed to be strengthened; 2) gross margin was about 22.85% (+0.07pct), of which smart healthcare gross margin was about 31% (+3.1pct); 3) the period cost rate fell (about 11.48%, -1.07pct) combined with a sharp increase in government subsidies (31.37 million yuan, +717%), so net interest rate increased by 2.8pct to 10.27%; 4) Account losses were +165.3% year-on-year, and accounts receivable accounted for about 13.3% of total assets (+2.4pct). There have been continuous breakthroughs in smart energy saving, and the layout of smart medical care has been improved. The company 1) Smart energy saving continues to innovate, undertakes and implements 6 contract energy management projects, provides energy consumption monitoring and management platform construction services for more than 400 office buildings and public buildings in Shanghai, and plans to complete 9 contract energy management projects in 2016; 2) Smart healthcare is progressing smoothly, with revenue of 220 million yuan (+87% over the same period), initially achieving “medical care first”. It is expected that the collaboration between smart medical care and electricity will exceed expectations, and medical informatization business development and exploration of high-quality mergers and acquisitions will improve the industrial chain; 3) Smart city top-level design has been launched in many cities across the country, developed and developed The “core platform for public information services based on cloud computing technology” has received a subsidy of 14.1 million yuan from the government. Core risks: increased R&D investment, PPP order growth falling short of expectations, risk of bad debts, etc.