Yiyang Xintong Co., Ltd. is a high-tech listed company listed on the Shanghai Stock Exchange of China in July 2000, with stock code 600289. It is a "key software enterprise within the layout of the national planning" jointly recognized by the National Development and Reform Commission, the Ministry of Information Industry, the Ministry of Commerce and the State Administration of Taxation of China. "It is one of the first 91 innovative enterprises recognized by the Ministry of Science and Technology, the State-owned Assets Supervision and Administration Commission of the State Council and the All-China Federation of Trade Unions. It is mainly engaged in the development of industry application software, solution provision and technical services for telecom and broadcasting network management system, enterprise IT operation support system, information security, telecom and Internet value-added business, intelligent transportation, highway electromechanical engineering and urban intelligent transportation, and smart city. After more than a decade of independent innovation and technology accumulation, the company is in the leading position in the industry in the fields of telecom operation support system (OSS), security products and solutions integration, value-added business platform, intelligent traffic control and other products and solutions. Currently, Yiyang Xintong has 2,800 employees globally***, has established a marketing network and local technical service system covering 31 provinces in China, and has branches in the United States, Germany, Central Asia, the Middle East and other countries and regions.

Industry rating investment advice:? The company's main business is growing steadily, new business expansion is beginning to show results, and actively layout of the Internet of Things. The company's traditional carrier OSS business, smart city, intelligent transportation business, continue to obtain new orders, maintaining a steady growth trend. At the same time, the company based on the OSS business into the operator's big data system construction, network optimization market, made a significant breakthrough, through the bidding has won the Zhejiang, Shaanxi, Jilin, Shanxi, Liaoning, Henan and other 10 provinces and mobile group design institutes network optimization services market share. In addition, the company is also actively developing a system platform for SDN/NFV and piloting it in some of the mobile municipal companies, and in terms of smart city construction, it has set up a joint venture with the government and is actively exploring the PPP mode of operation. In addition, based on the good cooperation relationship with operators and the accumulation of vertical industries such as smart city and smart transportation, the company has actively laid out the Internet of Things platform and industry applications. In 2016, the company realized revenue of 1.331 billion yuan, up 11.15% year-on-year, and net profit of 130 million yuan, up 22.99% year-on-year, the net profit growth rate hit a five-year high.

Rating and Profit Forecast: As a leading domestic carrier OSS provider, intelligent transportation mechanical and electrical engineering and system software provider, the main business development is sound, network optimization, network security and big data business continues to make breakthroughs, and actively layout of the Internet of Things. The launch of the restricted stock incentive plan, covering a wide range of personnel, the shareholders, the company and the interests of employees bound, the future development is worth looking forward to. We expect the company's 2017-2018 net profit of 172 million yuan, 209 million yuan, EPS 0.27 yuan, 0.33 yuan, corresponding to PE 41 times, 33 times, the first time to cover, to be "hold" rating.