Introduction to this report: the company merges the leading enterprises of private planning and design institutes, the planning and design business grows steadily, 5G industrial chain network planning and design comes first, and next year's performance is expected to usher in explosive growth investment points:

For the first time, it was given an "overweight" rating. We expect the company's income from 2018 to 2020 to be 11.41,14.69 and 1.821 billion yuan, the return net profit to be 1.70,2.22 and 295 million yuan, and the earnings per share to be 1.00,1.31 and 1.74 yuan. With reference to the adjusted present value valuation and comparable valuation method, the target price of Hengtai Shida is 32.24 yuan and the rating of "overweight" is given.

Communications planning and design industry performance first, the company's mergers and acquisitions of private design leaders benefit from 5G catalysis is expected to usher in a substantial increase in business. Communication planning and design is a key link in the construction of communication engineering, which will enjoy 5G investment-driven dividend in the early and middle stages. Liaoning posts and Telecommunications is highly qualified in the planning and design industry, ranking among the first echelon of domestic design institutes, and its revenue and profits have continued to grow in recent years. With the sharp increase in the difficulty of 5G planning and design, the company's performance is expected to improve significantly.

The company sets up the cross-combination of traditional business and 5G power network to seek new growth points of business.

The company has been ploughing in the electric power industry for many years, with sound financial situation and clear governance structure. With the advent of 5G investment cycle, combined with the technical advantages of Liaoning posts and telecommunications in the field of communications, we will focus on the construction of 5G electric power communication network in the future.

Smart big data plate and broadband carrier chip business development is stable. The company's intelligent big data solutions and products are gradually expanded to many fields based on the power industry; the subsidiary is committed to the research and development of new technology broadband carrier chip business, further improve integrated data acquisition and communication services in the future, and actively build a "2n" development strategy for sustainable development.

Risk hint: 5G investment is lower than expected, and the competition pattern of the industry is intensified.