Incident: The company announced that it plans to repurchase the company's shares with its own capital of not less than RMB 50 million (inclusive) and no more than RMB 200 million (inclusive), and the repurchase price should not exceed RMB 13 per share (inclusive). Comment: 1. Repurchases are expected to enhance market confidence. On the one hand, this repurchase shows that the company accepts that its stock price has entered the value range, and on the other hand, it is expected to significantly enhance current market confidence. According to the company's repurchase plan, shares are being repurchased through centralized bidding transactions and other methods permitted by laws and regulations. The shares to be bought back will be used to implement equity incentive plans, employee stock ownership plans, or cancel the registered capital in accordance with the law to reduce registered capital. 2. Focusing on the main channel, the 5G optical communication and security strategy continues to advance the company's previous divestment of micro-energy technology, mainly focusing on the company's overall strategy. After the new executive took office, the company began to focus on the two major directions of 5G optical communication and security, and the company's future strategic development path became more clear. The company began forming a new management team in 2017 to enhance the company's long-term competitiveness from a management level. The new chairman, Yan Yongqing, executive Cai Wenjie, and director Chen Haibin, have rich industry experience and resources in the field of operators and equipment vendors, and will lead the company back to a growth channel in the field of 5G optical communication and security. The company's current strategy is divided into two major parts: 1. The optical communication sector: mainly includes optical fiber, ODN equipment, and SDN equipment. In addition, the company plans to further expand into the field of communication equipment in the future, and the company's strength in the field of optical communication is expected to be further strengthened; 2. Security sector: Baizhuo Network provides solutions for the communications industry, government, and enterprises, where network visualization market share is expected to increase. 3. 5G is getting closer, and the company has ushered in medium- to long-term development opportunities in the short term. The performance in the first half of the year was mainly affected by the ZTE incident and the operator's cable implementation progress. It is expected that the Q4 optical fiber business will begin to recover. From a medium- to long-term perspective, the company's 5G optical communication+security strategy is progressing comprehensively. With the advent of 5G, we believe that the company's communications business will benefit significantly and gradually break out of the medium to long-term bottom. 4. Profit Forecast We are optimistic about the company's main channel strategy focusing on 5G optical communication+security. On the one hand, 5G is getting closer, and the company will significantly benefit from industry development; on the other hand, Baizhuo Network will expand the company's business layout in the field of network visualization and communication equipment, enhancing the company's competitiveness. Looking at the recovery of the optical fiber business in the short term, positive changes in management in the medium to long term, and the continued advancement of the 5G optical communication+security strategy. The company's 2018-2020 EPS is expected to be 0.67, 0.92, and 1.35 yuan respectively, reaffirming the purchase rating. Risk warning: collection falls short of expectations; acquisition performance falls short of promises; repurchase plans fail to pass shareholders' meetings; repurchase plans cannot be implemented due to excessive stock prices; equity incentives or employee shareholder abandonment;