LED packaging companies embark on the path of digital marketing transformation Wanrun Technology was founded in 2002, started with high-end indicator device packaging, and has now grown into a middle and high-end LED light source device packaging and LED lighting product provider integrating R&D, design, production and sales. In recent years, as competition in the field of LED packaging and lighting applications has become increasingly fierce, the price and gross margin of the company's products have continued to decline, and traditional business is under certain pressure. In order to regain growth, the company acquired Nisshang Optoelectronics in August last year, beginning a positive transformation into the digital marketing field. The digital marketing market has a large space. The compound growth rate will reach 24% in the next three years, benefiting from the continuous increase in the number of Internet users and the increasing awareness of netizens' awareness of high-precision and diversified online advertising. China's digital marketing market is showing a rapid development trend. From 2012 to 2014, the size of the domestic Internet advertising market grew from 77.3 billion to more than 150 billion yuan, with a compound growth rate of more than 40%. It is estimated that China's overall Internet advertising market will exceed 400 billion yuan by 2018, with a compound growth rate of 24% over the next three years. Among them, programmatic purchase transactions are favored by advertisers because they accurately match advertisements with target customers and can track and optimize results, and have become the fastest growing Internet advertising model in recent years. The domestic programmatic purchasing market is expected to reach 40 billion by 2017. The company's transformation into digital marketing opens up room for long-term growth, focusing on the future high growth and good prospects of the digital marketing market. The company began the pace of transformation. In November of this year, the company acquired hundreds of millions of wireless to enter the mobile advertising market; acquired Dingsheng Yixuan, laid out vertical search services, participated in Botu advertising, and got involved in full-case Internet marketing in the female vertical industry. Through the “two and one participation” described above, Wanrun will gradually grow into a digital marketing company with a full industry chain integrating digital advertising creative planning, DSP/DMP, wireless distribution, media resource agency, and customized membership services. Digital marketing is on the rise in China, and there is huge room for the future. We are optimistic about the company's active expansion into this field. We are optimistic about the company's transformation into the digital marketing field and give the company a “buy” rating. We expect the company's operating income from 2015 to 2017 to be 10.24/13.26/1,651 billion yuan, respectively, net profit attributable to shareholders of the parent company of 0.93/1.58 billion yuan, and EPS 0.36/0.61/0.80 yuan, respectively. The dynamic price-earnings ratios corresponding to the current stock price (34 yuan) are 95/56/43X, respectively. The company is a high-quality target of “steady growth in traditional business and large room for epitaxial transformation”. The majority shareholders participated in the increase of 220 million in the middle of the year and voluntarily locked in for 3 years, demonstrating the company's firm will to transform. The company's transformation attitude is firm and expectations for continued extension are strong. For the first time, we covered and gave the company a “buy” investment rating.