Guide to this report: Aowei was approved to establish a cluster communication system mobilization center in the Northeast region (Liaoning). This is the first step taken by the company in the product field after obtaining a military brand license. Gradually expanding markets other than operators will be the focus. Investment points: Maintain the “increase in holdings” rating, with a target price of 11.2 yuan. Losses in the company's main business have gradually narrowed, and the direction of expanding military applications and old-age services in the future has become clear. Since the establishment of the System Mobilization Center did not bring substantial orders to the company in the short term, we maintained the 2014-2015 EPS of 0.15/0.22 yuan, respectively, and the target price of 11.2 yuan, maintaining the “increase in holdings” rating. Incident: The company was approved to establish a cluster communication system mobilization center in the Northeast region (Liaoning). The company announcement received the “Approval on Establishing the Northeast Region (Liaoning) Cluster Communication System Mobilization Center” from the National Economic Mobilization Office and agreed to establish a Northeast Region (Liaoning) Cluster Communication System Mobilization Center based on Aowei Communications. National defense and security needs are driving a boom in private network construction. The private network cluster system mainly provides emergency communication, command and dispatch, and daily work communication services for the military, government and public security, utilities, industry and commerce. Compared with public networks, it has characteristics such as reliability, efficiency, and safety, and will usher in an increase in demand driven by national defense and security requirements. Relying on network optimization and technology accumulation, we will follow the path of integrated development between the military and the civilian population. The National Economic Mobilization Office conducts potential surveys and preparations for materials and equipment needed in wartime in order to guarantee war needs in China, and is responsible for the promotion of military and civilian integration, peace conversion capacity building projects, and dual-use technology. Aowei Communications is a leading telecommunications enterprise in the Northeast region and has a certain amount of technology accumulation in the field of wireless communication. Starting in 2012, the company has successively obtained a three-level classified unit qualification certificate, equipment manufacturer registration certificate, and weapons equipment research license. We believe that expanding the military market with high gross margin outside of the operator market has become an important strategy for the company, and that approval to set up a cluster communication system mobilization center this time is an important step it has taken in the specific field of national defense applications. Risk warning: Competition in the old-age care business is intensifying; operators' network optimization promotion process falls short of market expectations.