Incident: The company released its 2018 semi-annual report. The first half of the year achieved revenue of 307 million yuan, an increase of 56.81% year on year; net profit to mother was 756.902 million yuan, up 51.08% year on year. Net profit after deducting non-recurring profit and loss was 697.325 million yuan, an increase of 39.92% year on year. Revenue is growing rapidly, and new asset management regulations drive the penetration of new products. In the first half of the year, the company's main business, customized software development and sales, and software technology services increased by 79.06% and 22.42% respectively. The comprehensive gross margin remained high at 81.44%, and product competitiveness continued to be reflected. The company is based on financial valuation and accounting products to meet the investment needs of financial institutions in financial information systems while achieving rapid revenue growth. On the other hand, a series of new financial policies represented by new asset management regulations have boosted the new demand of financial institutions for the construction of corresponding information systems. The company's main business will continue to benefit from being driven by policies. The next-generation asset management system platform project and asset trusteeship system project are expected to accelerate their respective market penetration and accelerate the company's performance growth in this context. Focus on the implementation of new technology and lay out all aspects of the financial industry. The company has accelerated the transformation and upgrading from a financial software provider to a financial service provider in recent years, and is focusing on the application of new technologies such as big data, cloud computing, blockchain, and artificial intelligence. Product services have been further extended to OTC transactions, non-standard assets, TA fund settlement, intelligent asset management operations, intelligent escrow services, etc., and are widely used in all aspects of the financial industry, strengthening the company's overall competitiveness while cultivating new performance growth points. R&D investment continues to grow to enhance market leadership. During the reporting period, the company invested 105 million yuan in R&D, up 31.04% year on year, accounting for 70.20% of overall management expenses; accounting for 34.53% of revenue, leading most A-share computer companies. The company's high investment in R&D helps to continuously improve its commercialization capabilities. In addition to this, at a time when new financial policies are frequent, strong R&D capabilities help enhance the company's speed of response to new opportunities and markets brought about by policies, thereby strengthening its market leadership in the field of fintech. Investment advice: The company's next-generation asset management system platform and next-generation asset escrow system continue to be promoted to help the rapid growth of performance. At the same time, it continues to accelerate the implementation of new technology applications and accelerate the transformation and upgrading of its own business model from a financial software provider to a financial service provider. The company's 2018-2019 EPS is expected to be 0.38 yuan and 0.54 yuan, respectively, maintaining a “buy-A” rating, and a target price of 20 yuan for 6 months. Risk warning: risk of innovative business falling short of expectations; risk of internet financial regulation