Guide to this report: The interim report turned a loss into a profit, and growth throughout the year will remain under pressure; anti-counterfeiting paper products and new payment ciphers have been introduced into the market, opening up vast market space; and for the first coverage, an increase in holdings rating was given, with a target price of 99 yuan. Key investment points: First-time coverage is given an increase in holdings rating, with a target price of 99 yuan. Considering that the company's traditional business is facing an industry trend of declining product prices, it may put some pressure on the company's performance. Without considering the volume of new business for the time being, it is predicted that the EPS for 2015-2017 will be 0.27/0.32/0.39 yuan, respectively, with a corresponding growth rate of -19%/19%/22%. The PE of comparable companies in the industry in 2015 was 204 times. Considering that the company has been in the reserve period for new business transformation for 15 years, a certain valuation premium was given, corresponding to the target price of 99 yuan, and was given an increase in holdings rating for the first time. The interim report turned a loss into a profit, and growth will remain under pressure throughout the year. The company achieved revenue of 91.04 million yuan and net profit of 21.79 million yuan in the first half of the year, with year-on-year increases of 20.9% and 15.6%, respectively. The increase in revenue is mainly due to the increase in sales volume brought about by the increase in the market penetration rate of the company's main product, electronic payment cryptography devices. In terms of gross margin, the year-on-year increase was 6.9 percentage points, mainly due to the optimization of the product sales structure. In terms of cost ratio, sales expenses fell by 6.6 percentage points year on year, mainly because sales service fees were controlled, with a decrease of more than 70%; management expenses increased by about 2.5 percentage points, mainly due to an increase in R&D personnel, and a 50% increase in personnel remuneration over the same period last year. Considering the continued decline in the price of payment ciphers, it is expected that the company's 15-year performance will be under pressure. Paper anti-counterfeiting products and new payment ciphers have been introduced into the market, opening up a broad market space. The company's fund-raising product project “Paper Anti-Counterfeiting Product” and the new payment cryptography device have both been introduced to the market. With competition in the existing business payment cipher industry intensifying, the launch of a new business is conducive to changing the current situation of the company's single product structure and increasing the company's profitability. At the same time, the company is actively transitioning to the mobile Internet, has completed the development of mobile cloud communication platform products, and developed the enterprise internal office and communication software “Enterprise T Letter” and the public payment system “Bank-Enterprise Connect” based on this. It is expected that the pace of new business promotion will accelerate and generate performance contributions by 2016. Risk Warning: Competition in main business intensifies; new product promotion falls short of expectations