The company released its 2018 semi-annual report: revenue was 307 million yuan, up 56.81% year on year; net profit was 75.6902 million yuan, up 51.08% year on year. Policies have driven the explosion of business demand, and the company's performance has grown rapidly. During the reporting period, a number of policies went hand in hand, such as the continuous promotion of business reform in the financial industry, the introduction of value-added tax on asset management products, new valuation regulations for stocks with restricted circulation, new liquidity risk management regulations, new asset management regulations, etc., which stimulated an increase in the informatization construction demand of financial institutions, and the company's various business lines showed explosive growth. Customized software development and sales revenue was 209 million yuan, up 79.06% year on year, and software technology service revenue was 72 million yuan, up 22.42% year on year. The explosion of multiple product lines accelerated, driving the company's revenue growth rate as high as 56.81% and net profit growth rate as high as 51.08%. Continue to increase investment in R&D and actively expand products and services. In the first half of the year, the company invested 106 million yuan in R&D, an increase of 31.04% over the previous year, and R&D investment continued to accelerate. In terms of R&D, the company adheres to the concept of product innovation and technological innovation, and the two develop in parallel. In terms of technological innovation, the company explores the application implementation of new technologies and products such as big data, cloud computing, artificial intelligence, blockchain, and microservices. In terms of product innovation, product services have been further extended to OTC transactions, non-standard assets, TA fund settlement, intelligent asset management and operation, and intelligent escrow services. The asset management industry is booming, and the company has broad room for growth. The company's main business is asset management IT systems, and its market demand is highly correlated with the prosperity and policies of the asset management industry. The domestic asset management industry is in a period of booming development, and asset management products are becoming more complex and diversified. At the end of 2017, the total assets managed by various asset management industries reached 128 trillion yuan, with an annualized growth rate of 40% in recent years; at the end of 2017, the asset custody scale of the Chinese banking industry reached 141.5 trillion yuan, a growth rate of 16.06%, and the investment portfolio reached 19642 million, a growth rate of 24.04%; as of June 2018, the asset scale under autonomous management by fund industry associations was about 54.83 trillion yuan. As an industry leader, the company will fully benefit from the industry's growth dividends. Investment advice: The company's 2018/2019/2020 EPS is expected to be 0.44/0.63/0.82 yuan, corresponding to PE about 33.26/23.06/18.00 times, giving it an “increase in holdings” rating. Risk warning: Internet finance business falls short of expectations, industry regulation is becoming stricter