Investment matters: The company released its 2017 semi-annual report: operating income was 441 million yuan, up 297.45% year on year; net profit was 36.5015 million yuan, up 138.26% year on year. Net profit after deducting non-return to the mother was 35.326 million yuan, an increase of 216.84% over the previous year. Report summary: Benefiting from the high investment in security construction in Xinjiang, the company's revenue has achieved rapid growth. The company achieved significant revenue growth, including security system services of 327 million yuan, an increase of 761.29% over the previous year, mainly due to the blowout in the security industry in Xinjiang. The company won several major security orders based on strong project delivery and increased post-listing financing capacity; communication network services of 66.2726 million yuan, a decrease of 5.95% over the previous year; and equipment sales of 46.655 million yuan, an increase of 10,826.85% over the previous year, based on the increase in projects, ancillary equipment sales were also greatly increased. The cost control for the period is reasonable, and R&D investment is growing rapidly. The company has reasonable cost control over the company's period, with a year-on-year increase of 74.91%, which is lower than the revenue growth rate. Among them, sales expenses were 7,523,700 yuan, an increase of 138.30% over the previous year, mainly due to the increase in pre-project expenses and the increase in sales staff performance pay due to the increase in business volume in the current period; management expenses of 22.1696 million yuan, an increase of 60.21% over the previous year, mainly due to the increase in R&D investment in undertaking new business during this period. The company invested 11.827 million yuan in R&D, an increase of 211.09% over the previous year, mainly due to the company undertaking new business and increasing R&D investment during the reporting period. Epitaxial expands business integration, and the region radiates to northwest Central Asia. The target asset the company plans to purchase is a data center overall solution provider, which is highly correlated with the company's communication network service business. It is expected that in the future, business integration will be achieved in more fields of communication construction, operation and maintenance. At the same time, as an important communication network service provider in Xinjiang and the northwest region, the company itself will be based in Xinjiang in the future to explore the northwest and Central Asian markets based on its advantages such as its geographical location and familiarity with regional customer characteristics. Investment advice: The company expects EPS of 0.81/1.38/2.30 yuan in 2017/2018/2019, corresponding to PE40.22/23.74/14.25 times, giving it a “buy” rating. Risk warning: Risk of policy changes, quarterly fluctuations in orders.