Incident: On May 11, the company issued the “Prompt Notice on Signing a Memorandum of Investment Cooperation”. The announcement shows that the company plans to increase capital investment in Fujian Digital Fujian Cloud Computing Operation Co., Ltd., a wholly-owned subsidiary of Fujian Electronic Information Group. The intention to develop the field of big data is clear. The company that plans to increase capital to invest in cloud computing company plans to increase capital and invest in Fujian Digital Fujian Cloud Computing Operation Co., Ltd., its parent company, Fujian Electronic Information (Group) Co., Ltd., is a wholly state-owned electronic information industry asset management and investment platform funded by the Fujian Provincial People's Government. It has been awarded the “Electronic Information Industry Social Contribution Influential Enterprise”, ranking 38th in the country's top 100 electronic information industry, and is the vanguard of the “Digital Fujian” construction. The target company, Fujian Digital Fujian Cloud Computing Operation Co., Ltd., is a wholly-owned subsidiary of Fujian Electronic Information (Group) Co., Ltd., which specializes in the construction and operation of big data centers, and is gradually building an incubation platform for big data industry applications and an open development and delivery platform for government data, building an industrial ecosystem around big data and cloud computing chains. “New infrastructure” projects such as big data and cloud computing are the focus of future development. New infrastructure construction is the country's strategic development direction at this stage: On April 10, 2020, the National Development and Reform Commission and the Central Network Information Office jointly issued the “Implementation Plan on Promoting the “Going to the Cloud and Using Numbers to Empower Wisdom” to cultivate new economic development. The “Notice” states that in order to give full play to the impact of technological innovation and empowerment in fighting the impact of the epidemic, further accelerate the digital transformation of industries, and achieve high-quality economic development, it is proposed to accelerate the development and application of common technologies and key technologies for digital transformation. Support the exploration of next-generation digital technology applications and integrated innovations such as big data, artificial intelligence, cloud computing, digital twins, 5G, Internet of Things, and blockchain in eligible industries and enterprises. Financial health drives new development, and continued repurchases demonstrate confidence 1) The company's interest-bearing liabilities have declined significantly since 2016, and the balance ratio has also declined year by year. As of the end of 2019, out of the company's 2,393 billion interest-bearing liabilities, the interest-bearing debt maturing within one year was only 115 million, and the book monetary capital reached 2,405 billion. The monetary capital was sufficient, and the burden of subsequent transformation was small. 2) On December 27, 2019, the board of directors of the company deliberated and approved the share repurchase plan to repurchase 250-500 million yuan of company shares. As of March 31, 2020, the repurchase payment amount had been 86.576 million yuan; on April 21, the board of directors deliberated and passed a bill to adjust the maximum price for repurchase shares, raising the maximum purchase price from 6.58 yuan/share to 9.76 yuan/share, fully demonstrating the company's management's confidence in transformation and development. Investment suggestions: In the process of transformation and development, the company closely follows the national strategy and plans to actively lay out cloud computing-related industries; among existing real estate projects, completed projects have sufficient value and can continue to release profits in the future; rental income from owned properties is growing steadily; the balance and liability structure continues to be optimized, with sufficient cash on hand; at the same time, it continues to repurchase the company's shares, demonstrating confidence in future transformation. The company's 2020-2022 EPS is expected to be 0.35 yuan, 0.38 yuan, and 0.42 yuan respectively. The current stock prices corresponding to the 2020-2022 PE are 23.18X, 20.90X, and 19.00X, respectively, maintaining the “buy” rating. Risk warning: The progress of further cooperation with the target company fell short of expectations; the company's real estate project sales and settlement fell short of expectations.