Event: April 8, 2016 The company released its earnings forecast for the first quarter of 2016. Comment: The profit level of the main business may have improved markedly. In the first quarter of 2016, according to the company's preliminary estimates, net profit attributable to shareholders of listed companies was about 13.4193 million yuan to 17.4451 million yuan, an increase of 0 to 30% compared with the same period last year. Net profit attributable to listed companies increased significantly in the first quarter of 2015, up 61.8% compared to the same period last year, but mainly due to a sharp increase in software tax rebate revenue. In the first quarter of 2016, with a sharp decrease in software tax rebate revenue and a slight increase in operating income, net profit attributable to shareholders of listed companies was able to increase, indicating that the profit level of the company's main business improved markedly in the first quarter of 2016. Looking at the whole year, the first quarter's revenue was relatively small (about 15% and 17.7% in 2015 and 2014, respectively). If the main business in 2016 maintains the profit level of the first quarter, the annual results are expected to grow relatively rapidly. Profit forecast and rating: According to the company's performance report data, the company's EPS in 2015 was about 0.17 yuan, which was lower than expected. We expect the company's 2016 and 2017 EPS to be 0.29 yuan and 0.36 yuan respectively, and the 2015-2017 PE corresponding to the latest stock price will be 93, 56, and 45 times, respectively, maintaining the “increase in holdings” rating. Risk factors: declining gross margin, slow progress in the expressway WiFi business.