Key investment points Financial IC cards are still the company's main source of revenue, actively cultivating new businesses. The main contributor to the company's 15-year performance is still the financial IC card business. At the same time, due to the continuous expansion of the scope of business reform and the demand brought about by the upgrading of the value-added tax invoicing system, the volume of tax control board shipments surged in 2015, so future maintenance costs are considerable. The company is actively transforming into a service provider, laying out business directions such as mobile payment, online education business, TEE, and smart retail O2O. The education cloud platform focuses on both construction and operation, and continues to occupy the market by taking advantage of the first-mover advantage. The education cloud platform will enter a period of centralized construction in the next two years, with an estimated market size of 8 billion yuan. The company has signed strategic cooperation agreements with 8 provincial platforms. It is estimated that the company will account for one-fifth of the operating rights of regional platforms, use the advantages of platform resources to build an online education platform and open up the 2C market. It is expected to become a leading enterprise in education cloud platforms in the context of education informatization. I am optimistic about mobile terminal security solutions based on the TEE architecture for a long time. The company mainly develops on-chip operating systems with a TEE architecture. The future popularity of biometric mobile phones and the mobile payment market is heating up. As one of the few companies in China that have completed system development, the company will provide the company with new profit growth points if the plan is implemented and applied with support from companies in the industrial chain. The innovation sub-business was explosive in the later stages. The two major innovative sub-businesses (smart retail O2O and mobile payment) will target SAAS service providers in the future. Currently, the market is expanding, and the long-term trend is positive and explosive. At the same time, with many years of technology and industry application advantages in mobile security, the company is committed to the research and development of mobile tax control equipment for small and micro merchants. The market is still in a blank period, and future prospects are promising. Investment advice. We expect the company's EPS from 2015 to 2017 to be 0.02 yuan, 0.36 yuan, and 0.59 yuan, and the PE corresponding to the latest closing price will be 701 times, 38.9 times, and 23.8 times, respectively. We believe that the company, as the absolute leader of the education cloud platform, is about to ride the waves; at the same time, the innovative sub-business stands at a strategic high point, and the company's performance growth should not be underestimated in the future, giving it a “recommended” investment rating for the first time. Risk warning: The operation of the regional education cloud platform fell short of expectations; TEE-related product solutions fell short of expectations; market expansion of innovative sub-businesses fell short of expectations