In 2015, the company achieved operating income of 354 million yuan, an increase of 24.79% over the same period last year. The net profit belonging to listed shareholders was 572 million yuan, an increase of 6.53% over the same period last year. The EPS of earnings per share was 1.42 yuan. The profit distribution plan is to distribute a cash dividend of 5 yuan for every 10 shares, and to increase 28 shares for every 10 shares with the capital accumulation fund.

Sound operation and good financial condition. The company is a leading provider of marketing information solutions in China. the main business is to provide comprehensive solutions for product marketing and customer service based on cloud computing architecture and big data business intelligence to finance, industrial and commercial enterprises, cultural media, government and public utilities. In 2015, the company achieved an operating income of 354 million yuan, an increase of 24.79% over the same period last year, of which the operating income in the fourth quarter was 117 million yuan, an increase of 37.47% over the same period last year. The net profit belonging to listed shareholders was 572 million yuan, an increase of 6.53% over the same period last year. The company's performance drivers: (1) the company has achieved great performance improvement and considerable development in a series of projects related to cloud computing and big data application, and the IaaS cloud data center construction platform achieved business income of 163 million yuan during the reporting period. (2) the business of the company's marketing information platform continued to maintain steady growth, and the business income of the marketing information platform reached 171 million yuan during the reporting period. (3) the acquired Luan Century is included in the report. Luanshi is the leading domestic radio and television information technology service provider. It has obtained the promotion authorization or business agreement of 28 domestic television stations or channels, and the service covers more than 3000 high-end hotels at home and abroad. In 2015, Lu'an Century had an operating income of 64.5222 million yuan and a net profit of 31.2034 million yuan, fulfilling its annual performance commitment.

Investment in R & D has increased significantly, and the construction of fund-raising projects has made rapid progress. In 2015, the company's total R & D expenditure was 28.179 million yuan, accounting for 7.95% of operating income, an increase of 117.60% over the same period last year, providing a strong guarantee for the company to further improve its core competitiveness. After the completion of the marketing information system upgrade project, the company's existing solutions related to marketing information will be deepened and its functions will be expanded; the R & D center construction project will apply technical achievements to the company's series of products, thus increasing the competitiveness of the company's products in the market, and the two fund-raising projects will be completed by the end of 2016.

Profit forecast and valuation: the company adheres to the development strategy of attaching equal importance to endogenesis and extension, strengthens product research and development internally, enhances the core competitiveness of the enterprise, actively seeks good opportunities for mergers and acquisitions, and successfully acquires Luan Century. It has a synergistic effect with the company's main business of marketing information, and optimizes the company's industrial structure. We are optimistic about the strategic development direction of the company, and it is estimated that the EPS from 2016 to 2018 will be RMB 1.58,2.02 and 2.45 respectively, and the corresponding PE will be 124,97,80 times respectively. Although the company's PE valuation is high, the company is located in an industry with large market space and is expected to reduce PE value through endogenous and epitaxial development in the future, so we maintain a prudent recommendation rating.

Risk hints: profit decline risk, product and technology development risk, profit commitment can not achieve the risk.