Key investment events: Information Development completed the grant of equity incentives on June 29. The grant price was 55.79 yuan. Information Development announced an announcement on June 30. The first phase of the equity incentive plan was officially granted on June 29. The grant price was 55.79 yuan. A total of 1.5 million restricted shares were granted to 83 people, including the company's directors, management, and core technical personnel. The unlocking conditions are that the growth rate of non-net profit in 2016, 2017, and 2018 is not less than 15%, 30%, and 60% in 2015. The total cost of the restricted stock incentive plan was 274.353 million yuan, of which the amortization amount for 2016 was 1,0804 million yuan. Comment: The grant of the equity incentive plan has been completed, which deeply binds the common interests of management and technical personnel. The total number of people in this equity incentive plan is 83, accounting for 5.84% of the company's total number of employees at the end of 2015. It basically covers the company's core management and core technical personnel. The initial equity incentive coverage is wide, and its incentive effect is strong. The company's equity incentive price is 55.79 yuan/share. The higher incentive price also shows the company's optimism about the future prospects of file informatization, food traceability, and political and legal informatization industries, as well as confidence in the company's future growth. The Ministry of Agriculture issued opinions on building food traceability during the “13th Five-Year Plan” period, and the smart food safety market is about to explode. On June 23, the Ministry of Agriculture issued an opinion on speeding up the construction of a traceability system for the quality and safety of agricultural products, proposing the establishment of a unified national traceability management information platform, system regulations and technical standards. The “Opinion” points out that intelligent supervision capabilities should be enhanced, and a management mechanism for using data for talking, managing data, and making decisions using data should be established. Select several types of agricultural products such as apples, tea, pork, fresh milk, and turbot to carry out unified traceability pilot projects, and gradually expand the scope of traceability. We believe that during the “13th Five-Year Plan” period, the construction of food traceability will make great strides, and the application of modern information technology is a major focus, including the use of technologies such as the Internet of Things, big data, and the Food Safety Cloud, which will greatly improve food safety in China. As a leading enterprise in the field of food traceability construction, Information Development has significant leading advantages in industry understanding, market share, and technological maturity. Core investment logic: Here, we once again emphasize the core logic of information development, that is, “one arrow, two wings” to create experts in information resource management. “One arrow”: A national strategy to improve food safety, and the food distribution traceability industry is in an explosive window. The company has taken the lead with its card slot advantage, and future market prospects are broad; “Two wings”: it is in a leading position in archives and prison informatization, and currently there are opportunities for further cultivation in the market. For the detailed logic of industry and company development, please refer to “Food Traceability: The 13th Five-Year Plan” Ushers in a Policy Inflection Point, and the Ten Billion Market Seeks Industry Leaders” and “Information Development (300469.SZ) — Two Wings with One Shot to Build Information Resource Management Experts”. Profit forecast and investment recommendations: We predict that the company will achieve operating income of 5.73, 7.04, and 864 million yuan in 2016-2018, up 31.0%, 22.8%%, and 22.7% year on year; achieve net profit attributable to the parent company of 5,252, 7,106, and 92.03 million yuan, up 27.60%, 39.83%, and 31.15% year on year. We expect the company to achieve diluted EPS of 0.79, 1.06, and 1.38 yuan respectively in 2015-2017. Considering the “13th Five-Year Plan” policy support for food traceability, file informatization, and political and legal informatization, and the company's position and card position advantages in various segments, the company's performance growth is extremely flexible. The company's market value within the next 6-12 months is 10 billion yuan, and the corresponding target price is 150 yuan, giving it a “buy” rating. Risk warning: 1) stock market systemic risk; 2) product innovation risk; 3) risk of policy implementation falling short of expectations