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For 1H2008, the company reported total business income of Rmb1643mn (+18.90% yoy), net profit attributable to parent of Rmb180mn (+7.00% yoy), and EPS of Rmb0.34. According to the company’s dividend plan, each ten shares came out capitalizing common reserves of six, bonus stock of two, and pre-tax premium of Rmb0.25. The company’s core businesses include applied software and solutions development, software outsourcing and medical system services, etc. We consider main reasons for its turnover growth as: 1) High completion of projects in various fields such as electric, social security, power, etc. accelerated progress of domestic software business. 2) Expansion of software outsourcing talents. Additionally, increased nonrecurring profit & loss led a slower increase of income as that of the net profit growth. In the future, upgrade of telecommunication network and investment in “Jinbao” Project will be main growth points of the company’s domestic software business. On the other hand, outsourcing income will keep an average growth rate of above 30% being benefited from the worldwide software industry transfer in the long run. We project the company’s EPS during 2008 and 2010 be Rmb0.93, Rmb1.22 and Rmb1.54 separately, representing P/E ratio at 27x, 21x and 17x respectively. Given its long-term steady development, we maintain our rating of “Overweight” for the counter.