Investment matters: The company released the 2017 semi-annual report forecast: the company's net profit was 33.5 million yuan to 40 million yuan, an increase of 132% to 161% over the previous year. Report summary: The security industry is booming, and the company's performance is growing rapidly. Xinjiang is located in the core area of the “Belt and Road”, with social stability and long-term stability as the core of development. Security is an important support and component of stable construction, and demand in the security industry will continue to grow; at the same time, Xinjiang's investment in 150 million fixed assets has injected strong strength into the explosion of the security industry and related infrastructure. As a high-quality local enterprise, the company has strong delivery capacity and strong order collection ability. It has continuously signed large orders of 80 million yuan and 321.79 million yuan with Shule County and Kashi City, helping the company's revenue and profit continue to grow. Based on the existing market, promote “three-dimensional” security and high-tech applications. The company's two major businesses, communications engineering services and security system engineering, are developing rapidly. It undertakes a number of key projects, such as the 5,700-kilometer border line project in the whole of Xinjiang. The company undertook 3,700 kilometers of these. The maintenance volume in the later stages of the project was huge, providing the company with continuous and stable income. At the same time, the company integrates communication and security services, and uses the market that the company previously owned to comprehensively promote the construction of “three-dimensional” security. The company attaches importance to the application of cutting-edge technology in the field of security. While exploring artificial intelligence applications on its own, the company also engages in cooperation and negotiations with mainland application platforms, AR companies, and cloud platform companies to participate in the construction of smart cities in Xinjiang. It is based in Xinjiang, backed by Guangzhou in the north, and is heading towards Central Asia. As a local company in Xinjiang, the company has unique geographical and ethnic cultural advantages. While maintaining the advantages of the two major communications and security businesses in Xinjiang and the northwest, it will take advantage of the Belt and Road to vigorously deploy informatization in Central Asian countries. Investment advice: The company expects EPS of 0.77/1.36/2.26 yuan in 2016/2017/2018, corresponding to PE42.60/24.13/14.49 times, to maintain the “buy” rating. Risk warning: Risk of policy changes, quarterly fluctuations in orders.