The company released its 2019 semi-annual report, achieving operating income of 1,740 billion yuan, an increase of 41.69% over the previous year, and net profit of 170 million yuan, an increase of 31.85% over the previous year. In the first half of the year, the company added orders for BSS3.0 from China Telecom's four provincial companies. The company's BSS and big data business covered nearly 20% of China Telecom's market share. At the same time, it won bids for big data projects such as Jiangxi Mobile and China Mobile Online, and China Mobile achieved relatively rapid revenue growth. The fintech industry and the public security industry have made continuous breakthroughs. In the banking sector, the company launched new businesses such as cloud-based credit card core systems, big data anti-money laundering, intelligent collection systems, citizen credit system solutions, and accurate marketing and intelligent customer acquisition platforms. The subsidiary Weinbetter achieved further integration with the company's basic technology platform to enhance product competitiveness, focusing on expanding the domestic (including Hong Kong, Macao and Taiwan) banking software market. Public security industry applications have successfully expanded to Foshan, Zhanjiang, Chongqing, Ezhou, Jurong, Suqian, Shaoyang, Linwei, Chifeng and other places. The amount of contracts in the public security industry has increased significantly compared to the first half of last year. Due to the influence of macroeconomic factors at home and abroad, the commencement and signing of contracts was delayed compared to expectations, and revenue achievement was mainly reflected in the second half of the year. Increase 5G research and development. The company is building a business-oriented billing system for 5G scenarios. The billing part has sunk to the edge of the core network, carrying the billing and strategic control of 5G slices; in terms of CRM, using CPCP as the center of the entire B domain, integrating the sales value services provided by 5G; and combining PaaS and AI technology capabilities to create a cloud computing platform based on the 5G era. Investment advice: We are optimistic that the boom in cloud computing will drive the company's business to leapfrog by leaps and bounds. The company's EPS for 2019-2020 is expected to be 0.44 yuan and 0.51 yuan respectively, maintaining the buy-A investment rating, and the target price for 6 months is 11 yuan. Risk warning: New business development falls short of expectations; degree of commercialization falls short of expectations