Event: The company recently released its 2016 annual report. The company achieved operating income of 594,2315 million yuan, an increase of 46.45% over the same period last year; net profit attributable to shareholders of listed companies was 56.9274 million yuan, an increase of 28.08% over the same period last year. At the same time, the company announced its performance forecast for the first quarter of 2017, with an estimated loss of 4 to 8 million yuan, compared with a loss of 1.3 million yuan for the same period last year. Losses in first-quarter results did not affect the company's performance: the company's industry was affected by seasonal factors, and the first quarter fluctuated greatly. At the same time, considering that the company implemented restricted stock amortization, the amount included in costs and expenses was about 5,577,500 yuan. In fact, the company's performance in the previous quarter was similar to last year. There were no abnormalities, and there were no abnormalities, which did not have much impact on the company's actual performance. Multiple factors drive rapid performance growth: The main factors driving the company's performance growth are: 1) policy factors. The information economy will continue to grow under the promotion of various government policies; 2) technological innovation factors. The company strengthens in-depth research and development in key industries through various methods such as industry, education and research, and develops core technology platforms such as industry-leading basic software development platforms, big data technology platforms, cloud resource management platforms, smart logistics cloud platforms, etc., developing application management systems in various industries, government big data systems, etc., which occupy a leading market advantage in the industry; 3) management ability factors, the company has adopted Combining the ISO series management system with CMMI5, a set of efficient management mechanisms in line with its own characteristics was established. At the same time, in 2016, the company successfully implemented the first restricted stock incentive plan, enhancing the company's internal cohesion, and the company promoted continuous improvement in performance by improving management capabilities. Various products grew rapidly, and R&D investment increased: During the reporting period, the company's revenue from software applications in the industry was 307 million yuan, up 45.18% year on year, IT solutions were 269 million yuan, up 42.59% year on year, information technology services were 7.5 million yuan, up 40.13% year on year, and the Internet+ intelligent logistics cloud service platform was 10.31 million yuan, developing from scratch. Sales expenses, on the other hand, were 34.51 million yuan, an increase of 27.9% over the previous year, and control was relatively good. Management expenses were 121 million yuan, an increase of 53.29% over the previous year. The main reason was the increase in R&D investment. If the increase in R&D investment of about 30 million was deducted, the year-on-year increase was 14.9%, and cost control was better. R&D investment mainly increased R&D personnel from 442 to 645, and new R&D projects and new technology research were added. Investment advice: We expect the company's EPS for 2017 and 2018 to be $0.93 and $1.16, respectively. Based on the above judgment, an “increase in holdings” rating was given. Risk warning: The development of the power industry falls short of expectations, and industry growth is slowing down.