Officially change the name, announce that the company is fully focused on the main business of intelligent public security. According to the company announcement, the company renamed "Xin Zhi Cognition" and determined that "leading industry change with digital drive" as the core development strategy, combined with the sinking subsidiary of tourism assets, the company's dual main business focus path to the single main business of the intelligent public security is clear. At the same time, the company has been ploughing the field of intelligent public security for a long time with core technologies such as AI image analysis and data mining, and this strategic focus is clearly positioned as the high-tech listing platform of the New Olympic Group, and the future ecological layout of the company around intelligent public security is worth looking forward to.

The high growth of the performance in the forecast shows that the main industry of intelligent public security is booming. In the first half of 2018, through the active expansion of intelligent public security and bright engineering business, the business volume of industry cognitive solutions continues to increase, and the performance is growing rapidly: the company expects to achieve a net profit of 1.25-135 million yuan for shareholders belonging to listed companies from January to June 2018, an increase of 43% to 55% over the same period last year, indicating a high degree of prosperity in the main business of intelligent public security.

The company takes big data as the core in the field of intelligent public security and has accumulated rich technology and product advantages for a long time.

In the field of intelligent public security, the company actively constructs a new intelligent policing model with data platform service and ecological operation as the core, and accelerates the research and development of intelligent policing related product solutions. it focuses on creating the integrated command and dispatching solution of public security, the unified communication solution of command center, the solution of human network platform, and the intelligent decision-making solution of actual combat command. At the same time, the company combs the design concept, system composition and main application scenarios of the overall solution of the Xueliang project, and integrates the resources of ecological partners relying on the existing mature products and technical resources of the public security industry. for the political and legal Commission Comprehensive Management Office to create data fusion, agile structure, flexible application, on-demand enabling ecosystem, laying a solid foundation for the business development of Xueliang Project.

The provincial and municipal cognitive platform is progressing smoothly, and the rapid development of the whole country is worth looking forward to. The company led the Development and Reform Commission to set up a national laboratory, led the integrated command and dispatching, launched and gradually improved new solutions such as integrated command and dispatching solutions, command center unified communications solutions, and human network platform solutions; in 2017, it has successively achieved the construction and operation of 14 provincial and municipal business platforms, including Beijing, Shanghai, Sichuan and Jiang. It lays the foundation for strengthening the accurate service of the localization of the business area, improving the market share and customer stickiness, and promoting the overall layout of the national market. At the same time, relying on the technology accumulation in the field of artificial intelligence and big data, and with the support of ENN Group in energy, chemical industry, tourism and other multi-format scenarios, the company continues to develop cognitive solutions in various sub-fields; combined with the layout of provincial and municipal cognitive platforms, it is worth looking forward to the future superimposed incremental services and sustained high performance growth.

Investment suggestions: the company renamed "Xinzhi Cognition", tourism assets sinking subsidiaries, strategic focus on "digital-driven leading industry change"; the company focuses on intelligent public security main business path is clear. It is estimated that the company's EPS will be 1.16,1.63 yuan respectively from 2018 to 2019, corresponding to less than 16 times of PE in 2018, which is the lowest in the computer sector, maintaining the "buy-A" rating, with a three-month target price of 23.4 yuan.

Risk tips: cognitive solutions are not progressing as expected; industry competition aggravates risks.