With the help of the platform of listed companies, CLP Xingfa continues to make efforts, and the order is in line with expectations. CLP Xinlong completed the acquisition last year, injecting CLP Xingfa into the platform of listed companies, and vigorously developing public security, counter-terrorism and smart city business after asset injection. Successfully listed in the list of construction enterprises of "military oil project", with the access conditions to undertake the national Internet of things demonstration project of "military oil project"; the order continued to be issued, and the company and China Mobile Limited jointly won the procurement project of Ping an Huainan Phase II project, the amount is 209 million yuan. And signed the 224 million public safety comprehensive platform PPP project contract with Xinjiang Yining County Public Security Bureau, we believe that under the background of vigorously laying out public safety platforms and smart city construction in various provinces and cities, the company is expected to take advantage of the advantages, the successful bid project will produce demonstration effect and can be replicated, and continue to develop in the field of public security, anti-terrorism and smart city.

The company has Class A qualification and the PPP model accelerates the smart city project. The company has the "Nine Class" qualification of information system integration involving state secrets, and is committed to the application of new generation information technology, such as Internet of things, cloud computing, big data and so on. As the social capital of smart city, the internal rate of return of the company's smart city construction project comes from engineering profit and operating profit respectively, coupled with the fact that the company has both front-end perception technology and big data application technology, the project cost is low, and the project profit IRR is about 30%. The company has 1.3 billion PPP project experience in Guizhou Liupanshui, which is exclusive to the industry. CLP Xingfa has achieved a net profit of 155 million in 16 years, exceeding the bet performance of 138 million. We think it is expected to achieve a growth of about 40% in 17 years.

The cost advantage of charging pile is obvious, and it is qualified to be admitted by electricity sales company, which is expected to have a synergistic effect with smart city. The company and Global car enjoy signed a strategic agreement, the two sides cooperate to promote new energy car rental, wireless charging piles and smart city and other projects. Global car, relying on Shanghai Automobile Group and Automobile City Group, has built 1000 time-sharing outlets in Shanghai, invested more than a thousand vehicles, more than 100000 members, unattended, completed car rental and return processes through App, and has launched leasing business in Anhui, Jiangsu and other places. This cooperation will increase the performance of charging piles and video security systems.

Maintain earnings forecasts and buy ratings. Small batches of orders have been generated according to plan, and have won the access qualification of the sales company, which is expected to complement the traditional business, explosion-proof robots, etc., recently won another PPP project order, and the company's layout in all fields has been carried out smoothly. It is estimated that the EPS for 17-19 will be 0.33 EPS 0.44 shock 0.69 yuan, and the corresponding PE will be 31 shock 23max 15X, maintaining the profit forecast and buying rating.