According to a report by the Financial Association on January 14, Runan Technology, the holding subsidiary of the company, uses UWB embedded mobile technology and high-precision positioning technology as the core for forward-looking smart justice, medical care, nuclear power and other businesses. As a core member of the Guangdong Judicial Administration Science and Technology Collaborative Innovation Center, the “Judicial Electronic Identity Verification Platform for Supervisors” was approved by an expert group on January 10, and was awarded “it can be promoted to the national judicial field as a 'Guangdong experience' in the field of smart administration of justice.” Comment: The “Guangdong Experience” in the field of smart administration of justice has been built and is expected to be replicated and promoted throughout the country. Using UWB technology, Runan Technology can accurately calculate the location level of designated personnel and truly achieve centimeter-level accurate positioning. Using this technology to focus on spatial location and creative self-research, it has created a “judicial electronic identity authentication platform for supervisors” applied to prison administration. The “electronic identity platform” is one of the core research topics of the Guangdong Provincial Judicial Administration Collaborative Innovation Center. It has now been successfully applied in the Shenzhen prison system, and passed expert research at the “Judicial Electronic Identification Platform for Supervisors” seminar hosted by the Guangdong Provincial Department of Justice and hosted by the Shenzhen Municipal Bureau of Justice on January 10 。 In the future, it is hoped that it will be promoted to the judicial field throughout the country as a “Guangdong experience” in the field of smart administration of justice. Policies drive the rise in the prosperity of smart justice, and high growth can be expected in the future. In the context of the “13th Five-Year Plan” promoting “deep integration of informatization and administration of justice”, which promotes “deep integration of informatization and administration of justice”, a smart prison of more than 30 billion yuan and a smart social corrections market of 10 billion yuan have emerged. The company has become an absolute leader in the field of smart justice with high-quality technology research and development capabilities, technical talent reserves, and first-mover advantages, and is expected to achieve rapid growth. A strategic cooperation was signed with Huawei to jointly promote the development of the bank's intelligent IoT business. On December 10, 2019, the company signed a cooperation agreement with Huawei to carry out comprehensive cooperation on basic hardware, cloud computing, big data, artificial intelligence, etc. within the financial intelligence IoT industry to jointly promote the development of the bank's intelligent IoT business. Cooperation between the two sides will help the company provide customers with better products and services, significantly consolidate the company's financial IoT business foundation, and further enhance the company's business development capabilities. Investment advice: Considering the slow growth of the company's financial business, we lowered the company's net profit forecasts for the years 2019-2021 to 165 million, 231 million, and 310 million yuan (the original forecasts were 192 million, 253 million, and 311 million yuan), corresponding to PE 44 times, 31 times, and 24 times, respectively. Referring to comparable company valuations and company historical valuations, 37.7 times PE was given in 2020, corresponding to the target price of 12.58 yuan, maintaining the “recommended” rating. Risk warning: The financial security business is declining; the construction of smart justice falls short of expectations.