Key investment events: The company issued an announcement on the evening of September 5. The subsidiary Shanghai Sanqi won the bid for China Mobile's own brand 4G wireless landline procurement project. The project cycle is three years (August 17 to August 20), with an estimated amount of 163 million yuan, accounting for 17.15% of the total revenue of listed companies in 2016. The winning bid reflects the strong competitiveness of Shanghai Sanqi in the field of communications, which helps the company complete or even exceed the promised performance for the whole year. Shanghai Sanqi is a subsidiary of the company and has two major business lines: Internet of Vehicles products and mobile terminal communication products. The wireless landline project that won the bid this time falls into the category of mobile terminal communication products, reflecting the company's strong competitiveness in the field of communication modules. According to the interim reports of listed companies, since the merger on April 1, 2017, Shanghai Sanqi has contributed 92.32 million yuan in revenue and 12.96 million yuan in net profit. Winning the bid will help the company meet or even exceed the promised profit for the whole year. The extension development strategies of listed companies are beginning to bear fruit, and the synergy of the Internet of Vehicles business is worth looking forward to. Shanghai Sanqi has been involved in the automotive industry for many years, and the synergies with listed companies in the connected car business will gradually become apparent. The development of epitaxial development of listed companies has gradually accelerated in the past two years. The successful implementation of the epitaxial merger and acquisition strategy has helped listed companies continue to dig deeper into the Internet of Vehicles market in the transformation of front-loading business and build a complete Internet of Vehicles industry chain of “CID system+Internet of Vehicles software and hardware services+smart cockpit platforms”. Under the trend of intelligent automobiles, the company's new products are expected to experience a sharp rise in volume and price. The smart cockpit and LCD dashboard will be an important source of future growth for the company. The value of smart cockpit bikes is 2-3 times higher than that of traditional motorcycles, and the gross margin is also higher. It is expected that mass production will have a positive impact on the company's earnings. Profit forecast and investment advice: The company's EPS is expected to be 0.47 yuan, 0.66 yuan, and 0.87 yuan respectively from '17 to '19, maintaining the “increased holdings” rating. Risk warning: The slowdown in downstream automobile sales has had a negative impact on the company's product shipments.