The company's performance remained stable in '19, and the results of energy Internet transformation are obvious. The company's business performance remained stable in 2019. In 2019, the company's operating income was 1,123 million yuan, and net profit attributable to shareholders of listed companies was 295 million yuan. Since 2015, the company has relied on cloud service platforms to achieve Internet transformation. Products and services based on cloud platforms have grown rapidly, accounting for more than 30% of total revenue in 2019, and the results of Internet transformation are obvious. Focusing on the integrated design of the entire industry chain based on BIM and providing full-life cycle informatization services in the context of the country's vigorous promotion of the “Internet +” action plan and a new round of power system reform, the company actively lays out the power energy Internet construction, built a cloud service platform for the power industry, and comprehensively promoted the development strategy of the company's Internet service transformation. The company has built a complete cloud service product system for the entire life cycle of smart grids over the years, and has built a complete cloud service product system for the power industry, shifting the original project service model to providing standardized SaaS software products, using private cloud or public cloud methods to provide users with convenient and efficient overall informatization services; by building an electricity+intelligent service cloud platform, further integrating industry resources and gathering upstream and downstream service providers in the industry chain, the company has built a win-win energy Internet ecosystem for many parties. The development of the Henghua Cloud Service Platform is in line with the future development trend of informatization in the power industry, providing a strong guarantee for the gradual transformation and upgrading of the company into a comprehensive energy Internet service provider. The company continues to increase investment in research and development of key technologies and products in the cloud business. The integrated electricity+intelligent service cloud platform is running well. SaaS products in the three business systems of the design section, infrastructure management section, and electricity distribution section are constantly being updated, product functions are becoming more and more perfect, and the company's online cloud service capabilities have continued to improve. In particular, in the design section, the company has captured the industry trend of fully applying 3D design in power transmission and transformation projects built by the State Grid of 35 kV and above, and concentrated superior resources to focus on expanding the 3D design software market. The power grid 3D design series software occupies a leading market position. Company profit forecast and investment rating: We expect the company to achieve net profit of 382, 4.83, and 619 million yuan in 2020-2022. The current stock price corresponding to the PE value in 2020-2022 is 19, 15, and 12 times, respectively. Maintain a “Recommended” rating. Risk warning: incremental power distribution reforms fall short of expectations; epidemic control falls short of expectations; and progress in advancing new infrastructure falls short of expectations.