This report is read as follows:

19Q1 net profit increased by 10% Mel 30% over the same period last year, in line with expectations. At present, the company's financial technology + smart thing couplet two-wheel drive strategy is very clear, and the company's development will usher in a new era. Maintain the "overweight" rating and set the target price to 16.00 yuan.

Main points of investment:

19Q1 performance forecast is in line with expectations, maintaining the "overweight" rating, raising the target price to 16.00 yuan. In 2018, the company achieved revenue of 2.038 billion yuan, an increase of 26%, and a net profit of 314 million yuan, an increase of 26%. The net profit of 2019Q1 returned to its mother was 4968-58.71 million yuan, an increase of 10% Rue 30% over the same period last year. At present, the company's financial technology + intelligent thing couplet two-wheel drive strategy has been very clear, the company's development will usher in a new era. The revenue forecast for 19-20 years is 25.08 yuan and 3.015 billion yuan respectively, and the net profit forecast for 19-20 years is 3.77 billion yuan and 4.56 billion yuan (+ 0.18 billion yuan). The revenue forecast for 2021 is 3.62 billion yuan, and the net profit is 550 million yuan. The corresponding EPS in 19-21 years were 0.47,0.57 (+ 0.02) and 0.69 yuan respectively. Raise the target price to 16 (+ 1) yuan, corresponding to 19-year PE34x, and maintain the "overweight" rating.

Revenue has reached a new level, and the information business of intelligent terminals has grown rapidly. In 2018, the company's revenue exceeded the 2 billion mark, and revenue from financial technology, smart terminal informatization, smart energy informatization and intelligent supply chain informatization reached 13.23,2.98,1.92 and 173 million yuan respectively, up 25%, 45%, 27% and 25% respectively over the same period last year. Intelligent terminal information business has maintained a high speed of growth, and has become another starting point for the performance of run and software.

The double-wheel layout of Financial Technology + Smart things has been completed, and the 3.0 era is worth looking forward to. After the layout of Runhe in 2018, the current two-round strategy is very clear. Financial technology continues to work with ants to empower the digital transformation of small and medium-sized banks. IoT is focused on smart energy, smart driving, smart retail, smart hardware and other areas, with a new attitude to meet the current era of the intelligent Internet of things.

Catalyst: the company has further upgraded its cooperation with Ant Financial Services Group and made a new breakthrough in Smart things.

Core risk: impairment of goodwill and lower-than-expected market development.