Investment highlights: events. On May 24, 2017, after review by the M&A and Reorganization Review Committee of Listed Companies of the China Securities Regulatory Commission, the company's issuance of shares and payment of cash to purchase assets and raise supporting capital and related transactions were approved unconditionally. Trading of the company's shares has resumed since the opening of the market on May 25, 2017. Moving from communications to the Internet of Things, the original main business is expected to be strategically upgraded after the fixed increase is completed. In 2017, on the basis of maintaining business stability, the company will actively expand applications for the IoT industry, thereby extending the company's wireless communication data optimization capabilities and industrial resources to the IoT field with more market space. Following the company's investment in the IoT incubation base project, the issuance of shares and the acquisition of One Core Intelligence through cash payments has been approved. It is expected to further strengthen the development speed of the company's IoT industry, further increase the company's revenue and profit scale, and provide downstream industrial resources, teaching cases, etc. for listed companies to lay out vocational education. According to the fixed increase plan, the estimated value of One Core Intelligence is 674 million yuan, and the promised profit for 2017-2019 is not less than 50 million yuan, 60 million yuan, and 80 million yuan, respectively. The employee stock ownership plan subscribes to supporting financing plans, and the extensive participation of core management to achieve a link of interests shows confidence and determination. The company plans to raise supporting capital from the non-public offering of shares from one specific target of Guangfa Asset Management (shareholding asset management plan on behalf of company employees). The total capital raised shall not exceed 132.97 million yuan, and the number of shares issued shall not exceed 104.8866 million shares. It is intended that all of it will be used to pay the cash consideration for the acquisition of One Core Smart Trading. The asset management plan mainly involves director and general manager of the listed company Zhu Danian, Chairman of the Supervisory Board Zhang Yize, Supervisor Long Yu, Deputy General Manager Chen Hong, Deputy General Manager and Board Secretary Xu Zequan, Deputy General Manager Guo Feng, Financial Director Luo Qiangwu, and other employees of the company. The total subscription amount was 91.45 million yuan, accounting for 68.77%. The large participation of core management is conducive to achieving synergy of interests between employees and enterprises, demonstrating the confidence of listed companies in future development. Investment recommendations and performance forecasts. 2016 was a successful year of development in the century. Revenue and profit increased moderately, and various layout results and operating indicators were impressive. In the first quarter of 2017, the net profit of shareholders of listed companies was RMB 31.3942 million, an increase of about 30.54% over the previous year, achieving a good start. The state's policy support for the industry-education integration project, and now that the scale of cooperation between Dingli University is advancing, the company's education equipment business demand is expected to heat up rapidly. In the medium to long term, after experiencing a period of layout and climbing, Dingli University will bring significant added value to the company's performance. The company's internal and epitaxial growth logic is clear. It uses excessive capital to build the Sino-German International School and the Internet of Things incubation base project, and invests in Jianomunde. The epitaxial layout continues to increase, the strategy is clear, and execution is strong. We continue to be optimistic about the company's high-quality genes and historical opportunities to apply practical vocational training in ICT and other applications. The company's cooperative model of running schools based on applied courses addresses the pain points of higher education and has a first-mover advantage. After maturing, Dingli College is expected to accelerate replication and become a new driving force for performance growth. We forecast the company's net profit for 2017-2018 to be 183 million yuan and 274 million yuan respectively, corresponding to EPS of 0.37 yuan and 0.55 yuan respectively. Based on the valuation level of the same industry, 41 times PE was given in 2017, corresponding to the target price of 15.17 yuan/share, maintaining the buying rating. Risk warning. Outreach layout, progress of Dingli University falls short of expectations, market risks, business risks, etc.