Event: The Guangzheng Hang Seng Media Education Team conducted research on Century Dingli on November 07, 2017. We hereby compile the company's fundamentals, research notes, and summarize the core views for investors to refer to. Core view: main communications industry: the main business of network optimization remains stable and controllable, and the acquisition of One Core Intelligence enjoys the growth dividends of the IoT industry. The company is a leading network optimization service provider in China. The revenue of the main business of 17H1 decreased by 12% year-on-year, and remained within a manageable range. The company spent 660 million yuan to acquire industrial robot equipment, RFID products, and IoT industry solutions. In 2016-2019, the gambling performance was 35 million yuan, 50 million yuan, 60 million yuan, and 80 million yuan. As demand for IoT orders increased, One-core Intelligence increased its layout in the IoT field, while expanding revenue points in various fields such as transportation, security, environmental protection, banking, etc., considering seasonal effects in the second half of the year, Yixin is expected to contribute impressive performance. Education sector: Horizontal expansion of teaching products continues to improve the vocational education ecosystem, and investment in schools binds interests to accelerate the advancement of Dingli College projects. Through the acquisition of Shanghai Meidu, which is the target of Sino-foreign cooperative financial education, the company is expected to expand its comprehensive teaching product system combining arts and science from traditional science and technology products. Currently, it has 1 school in Shanghai with 1,000 students, and will expand its layout in Guangdong and southwest China in the future. The company currently has 21 colleges of various types, of which 17 have begun enrolling students and teaching, with a total enrollment of 11,000 people. In the future, the company will lay out Dingli College by investing in shares and then cooperating with partner institutions. It is expected that the expansion of Dingli College will be accelerated on the basis of bound interests. At the same time, it is expected to obtain investment returns under conditions of continuous enrichment of capitalization operations after improving the rules of public promotion laws and regulations. The layout of the education sector is progressing steadily, and performance contributions can be expected. The company has been vigorously deploying Dingli College since 2015 and enrolling students in 2016. The college usually requires a period of 2-3 years for the full occupancy rate to rise. As the number of Dingli colleges continues to advance and the college's full occupancy rate increases, the company's performance in the education sector is expected to gradually be reflected. Profit forecast and valuation: We expect the company's net profit from 17-19 to be 1.78, 2.29, and 281 million yuan, and diluted EPS of 0.33, 0.43, and 0.52 yuan, corresponding to the current stock price of 27, 22, and 17 times PE. Considering the extension of the company's main business to the Internet of Things, it is expected that the industry will fully enjoy the growth dividends of the industry. We are optimistic about the company's growth over the long term and maintain a strong recommendation rating. Risk warning: IoT business growth falls short of expectations, and education layout falls short of expectations.