Key investment events: Century Dingli released its 2017 semi-annual results forecast on July 14. The performance is expected to rise as well. Net profit attributable to shareholders of listed companies was 64.2439 million yuan to 80.049 million yuan, an increase of 20% to 50% over the previous year. The company firmly implemented the “Communications and Vocational Education” dual main business strategy, and both major businesses maintained steady development during the reporting period. The reason for the semi-annual increase in net profit due to the disposal of the shares of Nanjing Yunchuang Big Data Technology Co., Ltd. is mainly due to the investment income achieved by disposing of the shares of Nanjing Yunchuang Big Data Technology Co., Ltd., and the estimated impact of non-recurring profit and loss on net profit is 39 million yuan. During the reporting period, net profit without return to mother was 25.2439 million yuan — 41.3049 million yuan, or (-46.93) %- (-13.17)% over the same period last year. Century Dingli Education's business consists mainly of two colleges: Dingli University and Sino-German University. The Dingli College project has been in operation for two years. The number of universities with 1,000 or more students is planning to develop 6 this year, and 3 have now been signed; the number of elementary schools with less than 1,000 students is planned to be around 15. The company plans to develop 100 companies within 3 years, and the number of people exceeds 200,000, of which about 30 are the largest. A single Dingli college invests 40 million yuan and can accommodate at least 300-400 students. The annual tuition fee is 12,500 yuan. The company receives 7,500 yuan, the overall gross profit is 50%, and teaching costs account for 30% of the revenue. Sino-German colleges focus on robotics and automotive mechanics. In terms of training methods, Sino-German colleges pay more attention to international training. The German dual training method has many opportunities for exchange abroad. The project has been in operation for a year, and two have already been implemented. With an investment of 100 million yuan and tuition fees of 16,000 yuan per year, the company can get 10,000 yuan of this, 55 percent of the portion exceeding 16,000 yuan, and it will continue to grow in the future. Profit forecasting and investment ratings: The company continues to promote a dual main business model. The communications sector has entered the IoT industry and improved the layout of the industrial chain through the acquisition of Yixin Intelligence; the vocational education sector holding Gano Mingde brought synergy effects. Gano Mingde focuses on integrating two types of business with human resources services and professional education for college students in the education industry. On the one hand, it holds Gano Matilda to provide professional employment guidance for the company's graduates, and on the other hand, it will also establish an enterprise and talent resource pool for the company. The company is further improving the vocational education market layout by holding Gano Mingde, which is expected to revitalize existing vocational education resources. We are firmly optimistic about the short-term growth in demand for education equipment and the medium- to long-term integrated development of the company's vocational education resources. The prospects for the dual main business model are good. The company's EPS is expected to be 0.32, 0.43, and 0.55 yuan respectively in 17-19, corresponding to the current PE share price of 31 times, 23 times, and 18 times, maintaining an “increase” rating. Risk warning: Unexpected termination of the acquisition plan, poor vocational education synergy