Incident The Company announced its 2017 mid-year report. In the first half of 2017, the company achieved operating income of 1,689 million yuan, net profit attributable to shareholders of listed companies of 178 million yuan, net profit attributable to shareholders of listed companies of 153 million yuan. At the same time, the company predicts that from January to September 2017, the company expects to achieve net profit attributable to shareholders of listed companies of 258-307 million yuan, commenting on the strong, and information and payment building a foundation for growth. In the first half of 2017, the company's mobile information service business and third-party payment business both experienced significant growth. The company's SMS business sent 67.2 billion messages, an increase of 31% over the previous year; the company's third-party payment business transaction volume was nearly 750 billion yuan, an increase of 99% over the previous year. According to statistics such as iResearch and Yiguan, the company ranked 4th in mobile payment transactions in the first quarter of 2017. According to our forecast, the company's mobile information service will maintain its absolute leading position in the country in 2017, and the third-party payment business is expected to double the transaction scale in 2017 compared to 2016. On August 1, the company announced that Linkage Advantage has become one of the shareholders of 45 Netlink institutions, with a shareholding ratio of about 2%. The establishment of Netlink indicates that domestic third-party payment business flows will be more concentrated on formalized channels, and the linkage advantage is expected to maintain more rapid growth in a pattern where the strong are strong. Big data and blockchain are developing rapidly. In the first half of 2017, the company's big data business achieved revenue of 47.36 million yuan, exceeding the total revenue of 43.9076 million yuan for the full year of 2016; the company has established a mature big data technology and management platform, has high-performance real-time and offline computing capabilities, and rich algorithm libraries and business models, and provides intelligent risk control services based on big data for dozens of financial institutions. Combining cross-border payment and factoring services, the company develops blockchain-based order management systems, and provides order verification and traceability services between customer systems, cross-border payment systems, and factoring systems; the linkage advantage cooperates closely with the Information and Communications Technology Institute of the Ministry of Industry and Information Technology. As an initial member of the Trusted Blockchain Working Group of the Data Center Alliance, it participated in the formulation and evaluation of “Trusted Blockchain Certification” standards. The manufacturing business has maintained steady growth, further building Industry 4.0 manufacturing. In the first half of 2017, the company's automobile and accessories industry achieved revenue of 773 million yuan, an increase of 7.21% over the previous year; the company's home appliance parts category achieved revenue of 283 million yuan, an increase of 37.81% over the previous year; and the motor and accessories category achieved revenue of 116 million yuan, an increase of 70.93% over the previous year. The company has set up a number of new production bases and introduced a number of fully automated production lines in new and old bases to implement the process of Industry 4.0 automation in practice. Profit forecasting and valuation. We forecast that the company will achieve operating income of 3.740 billion yuan, 4.487 billion, 5.03 billion yuan, net profit of 450 million yuan, 563 million yuan, 673 million yuan, and EPS of 0.36 yuan, 0.45 yuan, and 0.54 yuan respectively in 17-19. Relying on scenarios and data advantages, the company is gradually expanding into the in-depth field of consumer finance and building a consumer finance platform with the participation of many parties. We believe that the company's deep expansion in the field of consumer finance is in a rapid advanced stage from “1” to “10”. It should enjoy the high valuation of industry leaders, maintain the “buy” rating, and continue to focus on recommendations! Risk warning: policy risk, progress in the application of new technology is lower than expected.