Investment highlights On July 13, 2017, the company released an interim performance forecast. The net profit attributable to shareholders of listed companies in the first half of 2017 is estimated to be 35.50-40 million yuan, an increase of 132%-161% over the previous year. The high growth in the interim report's performance further confirms the high prosperity of the security industry in Xinjiang. The high increase in the company's performance in the first half of the year stemmed from the increase in business volume and expansion of business scale. Our judgment is mainly due to the intensive implementation of the company's security project orders. The company achieved net profit of 15.32 million yuan in the same period last year, which is a high base, but in the first half of this year there was still rapid year-on-year growth, which is enough proof of the explosion of the security industry in Xinjiang and the company's strong competitiveness. We expect that the company will continue to benefit from the high prosperity of the security industry in Xinjiang, and that orders and performance will continue to improve. The company's strong ability to receive orders and the rapid execution of large orders has strongly guaranteed the high growth of the company's performance. The company won the bid for security projects in Kashi City and Shule County in the first quarter, with a total amount of 400 million yuan, exceeding the company's total revenue of 363 million yuan in 2016. In addition to these two large orders, according to public information, the company's other projects, such as border security and monitoring projects in Altay region and Tacheng region, are progressing smoothly. The company determines revenue according to the completion percentage, and the repayment time has been specified when the contract is signed, which fully guarantees the timeliness of the company's revenue recognition and the stability of cash refunds. Endogenous+epitaxial two-wheel drive, strong execution to open up a wide space. While actively taking orders to do business, the company uses listed platforms to speed up the pace of outreach. Currently, trading has been suspended to consider asset acquisitions. Profit forecast and investment advice: We are optimistic about the explosive nature of the company's security business. We gave the 2017-2019 EPS 1.03 yuan, 1.56 yuan and 2.40 yuan respectively, maintaining the “increase in holdings” rating. Risk warning: The implementation rate of the security project is lower than expected, and there is uncertainty about the acquisition.