Company Profile

The company was restructured from Beijing Yinxin Changyuan Technology Co., Ltd. on September30, 2009. The company's main business is IT infrastructure for government and enterprise datacenters, overall solutions providing It operation and maintenance service, including ITinfrastructure services, IT infrastructure management software development and sale, andmatching system integration services.

Investment Highlights

Beijing Trust&Far Technology is a leading third‐party IT service provider (top three) in bankingsector. The Company also proactively steps into new fields and has become the largest third‐partyIT service supplier for China Mobile. Telecom clients contributed 24% of its total revenue in 2015.In addition, the Company owns abundant client resources in government, medical institutions,insurance companies and brokers.

CBRC released Supervision Guidance for 13th Five Year Banking Sector Information TechnologyDevelopment, which will promote application of cloud and big data technologies in banks. AsBeijing Trust&Far Technology has been a veteran in the field with strong technical strength andcomplete product line, we believe it will be a big beneficiary of the policy to embrace boom ofSME cloud maintenance market.

Earnings Forecast and Investment Recommendations: Beijing Trust&Far Technology has entered afast lane of development since 2014 with ever enlarging business scope, increasing demand forthird‐party IT service market, domestic IT devices’ replacing imported ones and newly‐launchedESOP. We made EPS forecast for the Company at CNY 0.36 in 2016, CNY 0.50 in 2017 and CNY0.67 in 2018. Reiterate OUTPERFORM.

Potential Risks: less‐than‐expected new clients, slower‐than‐expected progress of new business,lost big clients.