This report is read as follows:

The impairment of goodwill is a drag on performance, and the completion of the acquisition of Jiabo Technology is expected to reflect synergies. The company's products are expected to expand in the fields of logistics and retail, medical care, law enforcement, transportation, manufacturing and so on. Maintain the "overweight" rating and raise the target price to 23.40 yuan.

Main points of investment:

Maintain the "overweight" rating and raise the target price to 23.40 yuan. The company forecasts a net profit of 5000-65 million yuan in 2019, down 57-45% from the same period last year. The company completed the acquisition of Jiabo Technology in December 2019, and adjusted the 2019-2021 net profit forecast for home ownership to 0.64 (- 1.12 million), 2.51 (+ 0.23), 3.16 (+ 0.22) billion, corresponding to 0.20 (- 0.34), 0.78 (+ 0.07) and 0.98 (+ 0.07)) respectively, according to the company's business development. After the completion of the acquisition, the company will strengthen the dominant position in the industry, with reference to similar companies, giving PE30x in 2020, raising the target price to 23.40 yuan (+ 2.08 million), and maintaining the "overweight" rating.

The impairment of goodwill is a drag on performance, and the completion of the acquisition of Jiabo Technology is expected to reflect synergies. The year-on-year decline in the company's performance in 2019 is mainly due to the failure of Shenzhen Ruibaitai, which was acquired in 2019, to fulfill its 2019 performance commitment, with a goodwill impairment of 64.88 million yuan in the first three quarters of 2019, and a possible further impairment in Q4. If all impairment results in a goodwill impairment loss of 84.66 million yuan. The company's acquisition of Jiabo Technology has been completed, the two sides have synergy in sales and customers, the integration of the two sides will enhance the competitiveness of the company, and is expected to show initial results in 2020.

Win a number of project orders, increase research and development to new areas. Recently, the company has won the bid for China Petroleum & Chemical gas station hand-held explosion-proof intelligent terminal procurement project and China Resources Wanjia mobile POS project, reflecting the company's growing strength. The company has a leading strength in AIDC products, after the acquisition of Jiabo Technology in 2019 to supplement the printing chain, the future company's products are expected to expand in logistics and express delivery, retail industry, medical, law enforcement, transportation, intelligent manufacturing and other fields.

Catalyst: get big customer orders and new product launches

Core risks: exchange rate fluctuations, increased competition, lower-than-expected acquisition integration