Key investment points Performance is steadily rising, and corporate business is the main driving force: the company lays out three major business lines, the Corporate Communications Division, the International Communications Division, and the North American Internet Comprehensive Division. Among them, the enterprise communications product line continues to expand. In 2018, we achieved operating income of 929 million yuan, an increase of 11.11% over the previous year, and net profit of 86 million yuan, an increase of 177.67% over the previous year. The net profit growth rate continues to rise. We believe that after the successful transformation of the company, the performance of cloud communications, IDC and other businesses is expected to experience steady growth in 2019. The three major businesses are gaining strength one after another, driving performance forward steadily: in terms of enterprise business, the “video +” strategy is the guide to meet the immediate needs of video communication; in terms of personal business, the North American market is leading, and business boundaries are constantly expanding; in addition, the steady development of international communications is expected to become a new driving force for growth. The industry's prospects are improving, and the development of cloud conferencing can be expected: Cloud Video has a broad market space, and it is also expected that a large number of video conferencing service providers will be created in China. 263 itself can provide complete “cloud plus end” solutions, and has strong competitiveness in enterprise customer service and marketing. Cloud video conferencing provider Zoom has become a unicorn in the video conferencing XaaS industry, with a total market value of $2,477 billion in July 2019. Zoom's success will also drive domestic related industries, and sector valuations are expected to increase. Profit forecast and investment rating: 263 As a leader in enterprise services, the business is integrated into three business lines and the “video +” strategy is integrated. We are optimistic about the company's business development path. We expect the EPS from 2019 to 2021 to be 0.12 yuan, 0.16 yuan, and 0.20 yuan respectively, and the corresponding PE is 48.06/37.24/29.37 times, covering the “buy” rating for the first time. Risk warning: The easing of trade friction between China and the US fell short of expectations, video technology development progress fell short of expectations, and there was a risk of loss of core customers.