Key investment points: Maintain an increase in holdings rating. The company released its annual report. In 2015, it achieved revenue of 1,286 billion yuan, a year-on-year increase of 15.97%, net profit of 144 million yuan, a year-on-year increase of 11.12%, slightly lower than our expectations. Considering the impact of the decline in electricity investment growth on the company's main business, the 2016-18 EPS was lowered to 0.50 (↓ 0.29), 0.61 (↓ 0.38), and 0.68 yuan. Due to the decline in the growth rate and valuation of the same industry, the company was given 50 times PE in 2017, lowering the target price to 31 yuan, and increasing the rating. The boom in power grid bidding channels is declining, and off-grid channels are growing rapidly. As power grid companies' investment in power transmission and transformation equipment has slowed, the centralized bidding market has declined, and the company's tender batches and investment share have declined. In 2015, the company's power grid bidding contract amount was 497 million yuan, a slight decrease from the previous year. The amount of self-signed contracts in various marketing regions exceeded 600 million yuan, an increase of 12.5% over the previous year, and electricity information collection terminals and substation products grew rapidly. Among them, the contract amount for substation projects increased sharply year on year. Energy management products achieved a contract value of nearly 50 million yuan, an increase of 40.6% year on year. The company's power grid automation technology is highly extensible and is expected to become a “four meter in one” integrated electricity service provider. Relying on the accumulation of power grid automation for nearly 30 years, the company has now developed a series of applications such as gas SCADA, water control systems, energy management systems, water conservancy information systems, and location information solutions. In terms of water automation, it has successfully developed water markets in important cities such as Wuhan, Chongqing, and Urumqi. The company's smart water meters have entered more than a dozen water companies in provincial capitals, ranking among the highest in market ownership and share; in terms of gas automation business, the automated control system for the largest Fujian Minqing LNG gasification station in Asia built by the company successfully passed the expert group inspection, and the gas automation system's sales this year were close to 100 million yuan. Risk warning: The construction of coal, oil, electricity, and gas sharing mechanisms is lower than expected risk.