Incident: The company, Fujian Nebula Big Data Application Service Co., Ltd. and natural person Lin Weiguo jointly invested 50 million yuan to establish Fujian Xingrongji Information Technology Co., Ltd. Rongji Software, Nebula Big Data, and Lin Weiguo hold 71%, 19%, and 10% of Starrongji's shares respectively. Currently, Xing Rongji has completed business registration. Joining hands with Nebula Big Data to create the largest platform for domestic IoT applications: The shareholder Nebula Big Data is a subsidiary of Fujian Electronic Information Group. It specializes in cloud computing and big data applications. It is responsible for investing in the construction and operation of major information-based public service platforms in Fujian Province, and undertakes the operation of government affairs and industry data. In response to the “cloud+platform” strategy formulated by Nebula Big Data, Xing Rongji will actively participate in: 1) the construction and operation of the IoT business part in major projects involving the construction and operation of the IoT business part in Fujian emergency command, big data, e-government center, multi-card and video integration, and quality education resource sharing and management carried out by Nebula Big Data; 2) Participate in small and medium-sized enterprise informatization, Beidou satellite positioning and other business fields; 3) Actively participate in the government PPP projects and development of smart cities undertaken by Nebula Big Data through various means such as consulting services and social capital Business; 4) Listed in the new third edition within 5 years after official operation. In the future, Xingrongji will acquire the sole franchise for the Internet of Things public service platform in Fujian Province, undertake the operation of IoT public service platforms such as wearable devices, the Internet of Vehicles, smart medical care, smart education, etc., and formulate IoT business development plans. It also relies on this platform to independently develop IoT core operating systems, communication components, security components, core middleware and application systems, open up the upstream and downstream industries, and build a full-ecosystem platform. Through three to five years of operation, the goal is to bring the number of intelligent and wearable devices connected to the IoT public service platform to 500,000 units, creating the largest platform for IoT applications in China. There has been a fundamental change in the business model: as an e-government leader and Nebula Big Data, the company has obtained the sole franchise for the Fujian Internet Service Platform. It is expected that in the future, a huge transformation will be achieved in expanding the business field and exploring new profit models. Comprehensive services for small and medium-sized enterprises, including finance, as well as party and government services, will be the focus of expansion. Through a joint venture with state-owned assets, the company will become an IoT integrated construction and operation enterprise with many long-term fixed customers. While eliminating factors that fluctuate in performance, it has further improved bargaining power. The business model is undergoing fundamental changes, and it is hoped that it will embark on a fast track of development from now on. First “Prudent Recommendation-A” rating: The EPS from 2015 to 2017 is expected to be 0.02, 0.07, and 0.10 yuan respectively, and the current price corresponds to 987/352/229 times PE. Considering that the establishment of Star Rongji marks a major change in the company's business model, it has covered and given a “Prudent Recommendation-A” rating for the first time, with a target price of 32.15 yuan. Risk warning: IoT public service platform operating profit falls short of expectations