1. ICT+ vocational education dual main business. The company's strategic layout continues to be clear. The two main businesses of ICT+ vocational education formed a dual main business pattern in the first half of 2017. The two main businesses each had development highlights; the strategic intention was clear, focusing on industry trends and mergers and acquisitions and capital increases in the company's core business, which led to continuous appreciation in the company's value; the high increase in revenue and profit in 2017, and the correctness of the strategic layout tends to be verified. 2. When the Internet of Things explodes, the ICT business continues to benefit. Major IoT industries will mature one after another, and ICT will gain new opportunities as its technical foundation. The instrumentation business is constantly being driven by orders from the two major operators in CA and VOLTE; the big data business and public security projects are growing rapidly. 3. The merger and acquisition of One-chip Intelligence brings new opportunities for the development of the Internet of Things One-chip smart card Inley is the first in the country. The technical and price advantages are remarkable. The price drop brought about by IoT infrastructure has contributed to the further expansion of the industry. The market demand for smart cards is growing, and the overseas market for electronic tags is expanding rapidly. 4. Driven by industry and policy, the concentration and growth trend shown by expanding the vocational education landscape has brought barriers, advantages and opportunities to the company's development, and policy and market demand continues to rise. Dingli College was built on a large scale in 2017. The number of students exceeded 10,000, and there is still room for double growth in 2018. IT training is the most in-demand project in vocational education. The subsidiary Gano Mingde IT training layout is impressive; the merger and acquisition of Meidu has brought about the expansion of the company's new business model. 5. Investment suggestions: The ICT+ vocational education dual main business development logic is clear, and revenue and profit are showing a high growth trend; the ICT business is developing steadily, and operators and the Internet of Things are jointly driving the rapid growth of company-related specific businesses; policies and markets are driven by two wheels, and the vocational education layout is advancing at an accelerated pace. Dingli University ushered in a big year of enrollment; the merger and acquisition of Meidu brought a new business model; IoT dividends brought RFID competitive advantages, leading companies are expected to gain further advantages; the IoT industry's revenue share continues to rise, and the company's sales structure is constantly being optimized. Based on this, we expect the company's net profit from 17-19 to be 1.82, 2.32, and 286 million yuan, corresponding to 24, 19, and 15 times PE at the current price. Give: “Highly recommended” rating. 6. Risk warning: The gross profit of traditional network optimization services continues to decline; the development of the Internet of Things and education business falls short of expectations.