The main investment points rely on the Usoft platform to build an electronic cloud networking platform: The company's industrial cloud networking platform uses B2B commerce as an entry point to realize the “S2S” dream of the vertical electronics industry. S2S can vertically penetrate the entire electronic information industry chain. Component distributors are the entry point to this platform. Currently, the company's platform has accumulated more than 5,600 enterprise users. Based on S2S, the transaction layer is open, and all companies in the electronics industry and its supporting companies can register and trade on the platform. The birth of the company's industrial cloud networking platform “Usoft 5” has truly realized system connectivity between electronics industries, all-round intelligence, and solved most of the problems of small and medium-sized enterprises, “making management less difficult and business simpler.” At the same time, the Yousoft 5 platform can also provide comprehensive financial services such as financing, leasing, factoring, and microfinance to protect the rapid development of enterprises. Reduce costs and increase efficiency, and build extremely intelligent distributors: The company actively integrates and cooperates in the industry, enriches the company's technology distribution and resource-based product lines, and creates the company's complete and stable pyramid product line. The company has absorbed many high-quality brands such as SK Hynix, MTK, Lou's, Dexin, Microchip, Huiding, and Sanken in the horizontal integration of the industrial chain. On the one hand, the company will further improve Shenzhen Huashanglong's electronic distribution product line, enhance the company's resource advantages, provide customers with a more comprehensive package of services, increase the stickiness of core large and medium-sized customers, and still enhance the company's overall market competitiveness and profitability. On the other hand, selling highly attractive electronic products such as MTK and SK Hynix on the company's industrial cloud networking platform can attract more small and medium-sized customers to enter the platform, help expand the registered users of the platform, and increase the stickiness of the platform. Continuously promote employee shareholding, demonstrating the company's confidence: The company actively implements employee shareholding. Since 2016, the company has implemented two employee shareholding plans. Currently, it has purchased 47.94 million shares of the company, with a total purchase amount of about 439.35 million yuan, and an average transaction price of about 9.16 yuan/share. On the one hand, the implementation of employee stock ownership plans is conducive to attracting and retaining outstanding management talents and business backbone, attracting all kinds of talents more flexibly, and still better promoting the long-term, sustainable and healthy development of the company. On the other hand, the implementation of employee shareholding is conducive to stabilizing stock prices, demonstrating employees' confidence in the future development of the company. Investment suggestion: As the electronic information industry shifts domestically, we are optimistic about Yingtang Intelligent Control's transformation in electronic distribution and IoT homes. The company actively promotes “share repurchase+employee shareholding”, demonstrating the company's long-term confidence. Considering the increase in performance after mergers and acquisitions, we expect the company's 2017-2019 operating income to be 80.54/112.77/14.661 billion yuan, net profit of 2.93/3.87/500 million yuan respectively, corresponding EPS of 0.27/0.36/0.47 yuan, and corresponding PE of 31/23/18 times, maintaining the “recommended” rating. Risk warning: M&A integration falls short of expectations; industry competition intensifies; agency authority risk.