This report is read as follows:

The company is committed to providing one-stop digital services for financial customers, the financial information business is becoming more and more mature, and actively open up customers in the fields of government, electric power, energy, transportation, civil aviation and so on.

Main points of investment:

Cover for the first time, give cautious overweight rating. The company is a leading provider of financial software and solutions, system integration and data center services, and special financial equipment in the market, and gradually opens up customers in government, power, energy, transportation, civil aviation and other fields. It is forecast that the company's net profit from 2019 to 2021 will be RMB 0.78 million, RMB 0.88 EPS0.24/0.27/0.3, covering the target price for the first time RMB 11.40, and carefully increasing its holding rating.

The deep ploughing of financial informatization benefits from the rapid development of the industry. 1) in recent years, the China Banking and Insurance Regulatory Commission and other regulatory agencies have issued a series of policies to vigorously promote the construction of financial informatization. 2) the company's financial information business is becoming more and more mature: at the level of ① products, the company is a domestic manufacturer specializing in producing special equipment for financial information, and its products have covered most of the domestic banks and exported to more than 20 countries and regions. At the level of ② solutions, the company is one of the top ten major solution providers in the domestic banking industry, developing a variety of own software products and solutions, which are widely used in the front, middle and back office business systems of domestic banks, and provide DC, IC and CC services for financial enterprises.

Smart city layout continues to increase, actively expand non-financial industry customers. The company formally laid out the smart city business in 2018, which is divided into three parts: smart government affairs, intelligent transportation and intelligent education, with a business income of 65 million yuan (2.3%) and a gross profit of 12 million yuan (1.8%). Smart city business is expected to become an important growth point of the company in the future.

Catalyst: the company made a major breakthrough in the development of non-financial customers

Risk hints: intensified market competition and lagging technological innovation, etc.