Key investment events: The company released its annual report and achieved operating income of 3,566 billion yuan in 2015, down 3.92% from the same period last year; net profit attributable to owners of the parent company was 170 million yuan, down 5.38% from the same period last year; basic earnings per share was 0.135 yuan, down 5.59% from the same period last year. The performance was slightly lower than expected. Main views: 1) Benefiting from the domestic substitution process, financial electronics are growing steadily. On the one hand, while traditional businesses maintain leading shares of the Industrial and Commercial Bank and the Postbank, they are actively expanding financial institutions such as agricultural credit cooperatives and urban commercial banks, consolidating the company's dominant position in the cash processing equipment industry; on the other hand, new products such as new ATMs and CRS series equipment continue to gain market breakthroughs, benefiting from domestic substitution, financial electronics business is expected to achieve steady growth. 2) The advantages of private networks are prominent, and market share continues to increase. As a manufacturer with core technologies and products for analog clusters, PDT, TETRA, and TD-LTE broadband clusters, the company has overall solutions from analog to digital, from terminals to systems and applications, and from voice and data to video, with outstanding advantages. As domestic public safety rises to the height of national strategy, the private network market is expected to usher in major market opportunities. The company's market has covered 26 provinces, market share and popularity have gradually increased, and overseas markets have also achieved phased results. Market share is expected to continue to increase. 3) The EPS for 16-18 is expected to be 0.17, 0.21, and 0.23 yuan respectively, maintaining the “increase in holdings” rating. Risk warning: Private network business falls short of expectations; financial electronics growth is slowing down.