Investment points Rongji Software was founded in 1993 and is a well-known domestic software product and service provider. The company's main business is the development and sale of software products, computer system integration and technical support and services, involving e-government, information security, quality inspection, three-power engineering, collaborative management, etc., and mainly serves industries including domestic government, military agencies, quality inspection, energy and telecommunications. The company has a number of national certifications, and is one of the enterprises with the most complete range of qualifications and certifications and the highest level in the industry. The company adheres to the business strategy of “industrialization, commercialization, and service” of software. By combining homologous technology with the characteristics and needs of different fields and customers, the company has successfully entered different industries, successfully laid out fields such as e-government, information security, quality inspection, three-power engineering, and collaborative management, and established a leading position. In 2013, the company built the China Electronic Inspection and Quarantine Backbone System (E-CIQ) and made progress in the first half of this year. It also obtained the “Security Engineering Enterprise Qualification Certificate” level 2 qualification issued by the China Safety Products Industry Association, which will further enhance the company's comprehensive competitiveness in smart cities, safe city video surveillance, smart grids and other engineering fields. Profit forecast We believe that in the future, the company will make gains in the three-power quality inspection project, and will expand into the field of smart city security, and expectations for future mergers and acquisitions will increase. We forecast that from 2014 to 2016, the company's operating income was 800 million yuan, 1.05 billion yuan, 13.3 billion yuan; corresponding net profit attributable to shareholders of listed companies was 100 million yuan, 140 million yuan, and 170 million yuan, respectively; basic earnings per share were 0.32 yuan, 0.46 yuan, and 0.55 yuan, corresponding to the current stock price of 11.72 yuan. The price-earnings ratio was 37 times, 25 times, and 21 times respectively, covering the “increase in holdings” rating for the first time. Risks indicate the risk that research and development of a company's fund-raising projects is slower than expected; the risk that relevant national industrial policy formulation is slower than expected; and the risk of loss of high-end talent.