1. Baizhuo Network: A network visualization expert with continued high performance growth Baizhuo Network is a wholly-owned subsidiary of Tongding Internet that issued an asset acquisition plan in 2016 and merged with a listed company in March 2017. It promised net profit of 0.99, 1.37, and 155 million yuan respectively in 17-19. As a leading network visualization manufacturer, Baizhuo's performance has maintained rapid growth, while industry barriers guarantee Baizhuo's continued high profitability. This is the company's core strategic layout in the field of information security and communication equipment. The compound growth rate of Baizhuo Network's revenue and net profit from 2014-2017 was about 70% and 90%, respectively. Judging from the revenue structure, network visualization products account for the vast majority of revenue share. 2. Network visualization benefits from traffic growth and continuous development. The network visualization industry, where companies in the industry generally have high profit margins, is on the rise, and the prospects are broad. As more industry-related companies go public, the market will become more aware of the long-term sustainable growth of the industry. We believe that the core drivers of the network visualization industry are increasing data traffic and increasing security policies, both of which are driving up the demand for information security. Currently, the fixed network backbone network is being fully upgraded to 100G, and the development of big data, SDN, and future 5G will all drive the continuous development of network visualization. According to research by Grand View Research, the global network visualization market is expected to reach $4.7 billion in 2020, with a compound growth rate of 30.6% in 2014-2020. Looking at the domestic market, according to statistics from CCID consultants, it is expected to reach 19.089 billion yuan in 2018. The competitive pattern in the network visualization industry is relatively stable. In the future, after the issuance of relevant qualifications is more standardized, private enterprises with excellent technology and products may obtain more market opportunities. Currently, the main network visualization competitors in the fixed network field include Sino-Singapore Saike, Dipu Technology, and Hengwei Technology. In terms of profitability, companies in the network visualization industry maintain a high level of gross profit. The gross margins of Baizhuo Network and Hengwei Technology's network visualization business are close, around 65% and 60%, respectively; the application fields of Sino-Singapore Saike and Dipu Technology are currently different from Baizhuo, and the gross margin of the two remains around 80%. 3. Competitive advantages: Comprehensive layout, obvious advantages for operators and public security. We expect more fields to break through Baizhuo's comprehensive network product layout, covering the three levels of communication connectivity, security, and data; Baizhuo currently has obvious advantages for operators in the field of network visualization, and expects future breakthroughs in more downstream applications; in addition, in the public security market, Baizhuo's security products are in a period of rapid expansion, and revenue is expected to grow rapidly in the next two years. 4. Profit forecast: We are optimistic about the strategic layout in the field of information security network visualization and communication equipment brought about by the company's acquisition of Baizhuo Network. Looking at the reversal of the company's performance in the short term, positive changes in the company's management in the medium to long term, and the strategic layout of 5G optical communication+security, the company's continued development can be seen in the longer term. The company's 2018-2020 EPS is expected to be 0.79, 1.10, and 1.45 yuan respectively, maintaining the “buy” rating. Risk warning: Internet visualization competition intensifies: information security policy changes; the expansion of production of light sticks falls short of expectations;