1H20 results are in line with our expectations. The company announced 1H20 results: revenue of 249 million yuan, a year-on-year decrease of 0.36%; net profit to mother of 67.8 million yuan, a year-on-year decrease of 25.89%. 2Q20 revenue was 139 million yuan, up 28.96%/26.92% year on year, respectively; after deducting non-net profit of 34.38 million yuan, up 48.12%/26.76% year over month, respectively. The company's 1H20 performance was in line with our expectations. Development trend data intelligence has performed brilliantly in many businesses, and public services have demonstrated their capabilities. The company's public services and risk control services maintained good growth on the basis of last year's high growth. Among them, public services achieved revenue of 53.88 million yuan. In the face of contract renewals affected by the pandemic, the number of service customers increased by 50.4% year-on-year to 844. In the second quarter, the amount of contracts signed for public services was 43.61 million yuan, achieving 70.37%/153.19% year-on-year, respectively. In addition, during this epidemic prevention process, the company provided data support and auxiliary decision-making systems for various ministries and departments such as the General Office of the State Council, the Central Network Information Office, the National Health and Health Commission, and the Ministry of Science and Technology, and local governments in 31 provinces, cities, and 368 districts and counties, including Zhejiang/Hubei/Beijing. It has been widely recognized by the central government and local governments, and also reflects the company's data intelligence business capabilities. Public services and risk control services also achieved good growth of 27.1% and 11.9%, respectively, under the impact of the pandemic. In terms of business growth, the company's 1H20 fell 13.6%. Among them, 1Q20 declined a lot due to the epidemic, but as the domestic economy gradually recovered and investment demand improved, 2Q20 revenue rebounded year-on-year to achieve a 46.67% growth rate, and the recovery trend was good. Looking ahead to the second half of the year, we believe that on the basis of steady business growth, core data intelligence businesses such as public services will lead the company's revenue and profit to grow rapidly and enter a new stage of development. Gross margin declined due to increased labor costs, and R&D investment continued to increase. The overall gross margin of 1H20 fell 8.4ppt to 67.5% year over year, mainly due to an increase in labor costs and data outsourcing costs. 1H20's R&D expenses increased 10.82% year-on-year to 56.41 million yuan, and the R&D expenditure ratio was 22.64%. We believe that the continued increase in R&D investment is expected to continue to consolidate the company's technical advantages in data processing and continue to explore new data intelligence products. It took the lead in drafting the SDK security guidelines and was approved, and next-generation digital products continue to explore application scenarios for data intelligence. At the beginning of August, the “Information Security Technology Mobile Internet Application (APP) SDK Security Guidelines” led by Daily Interactive was approved by the Ministry of Industry and Information Technology. We believe that Daily Interactive led the drafting of a national standard for SDK security. On the one hand, it reflects the legal compliance of the company's data acquisition and use, which is recognized by industry partners and relevant departments; on the other hand, after the introduction of the standard, it will improve the level of data security in the SDK field, enhance compliance management requirements for related enterprises, and facilitate the expansion of the market share of leading companies. In addition, in June, the company released a new generation of digital products, which is aimed at helping customers build a data center. Looking forward to the future, we believe that the company will use resource accumulation and analysis technology to explore data intelligence application scenarios. The profit forecast and valuation remain unchanged from the original profit forecast. The current stock price corresponds to 44x P/E in 2021. Maintaining an outperforming industry rating and target price of 45.0 yuan (60 times 2021 P/E), with 35.6% upside. Risk The macroeconomic downturn has put pressure on growth services. Data service expansion growth falls short of expectations, data resource security risks, loss of core talent, transaction impact caused by the lifting of the ban on restricted shares, related transaction risks, and high customer concentration risks.