The guide to this report: Revenue and performance continued to grow rapidly in 2018, the scope for innovative business was broad, overseas market development was smooth, and the momentum for future fundamental growth remains strong. Investment points: Maintain an increase in holdings rating, with a target price of 39 yuan. Maintain the company's EPS in 19-21 at 1.09 yuan/1.47 yuan/1.96 yuan. Maintain the target price of 39 yuan and maintain the holding rating. The annual report is in line with expectations, and fundamentals are expected to continue to grow at a high rate. The company achieved revenue of 600 million yuan in 2018, an increase of 57.97% over the previous year, and realized net profit of 108 million yuan, an increase of 35.63% over the previous year. The reason the performance growth rate is lower than the revenue growth rate is that gross margin decreased due to increased competition in the transportation payment equipment market (overall gross margin fell 9.33 percentage points). Against the backdrop of basic stabilization in the prices of traditional business products and the steady progress of innovative business layouts such as mobile payment devices and e-passports, we believe that the company's profitability will further improve in 2019, and that revenue and performance will achieve simultaneous rapid growth in revenue and performance. There is still broad market space for smart transportation, and the transformation and upgrading to data operators is accelerating. China's rail transit informatization and bus payment equipment renewal process is progressing rapidly, and the potential demand for smart transportation is impressive. In 2018, the company's smart transportation business achieved revenue of 179 million yuan, an increase of 76.16% over the previous year, confirming our judgment. The company cooperated with Tencent and Ali to explore the practical operation of bus face-swiping payments and big data for bus travel information, and to build a new cloud-based product architecture model. It is optimistic that the company will continue to have the advantages of intelligent transportation card slots. Overseas expansion has entered a harvest period, laying out the digital identity information market. Overseas markets expanded smoothly in 2018, and overseas project reserves increased markedly. As identity management equipment enters a period of centralized renewal and the number of domestic outbound tourists increases rapidly, demand in the e-passport market will rise significantly. The identity information service business achieved revenue of 423 million yuan in 2018, an increase of 51.39% over the same period last year, and demand is growing steadily. The company will take advantage of its leading position in the industry, deploy electronic passports, and step up its entry into the emerging blue ocean market of digital identity information, and its profitability will be further enhanced. Risk warning: Technology promotion is not as implemented as expected; changes in the international environment affect overseas business