Key investment points: LED packaging companies resolutely transform digital marketing. Wanrun Technology was founded in 2002 and is a leading provider of high-end LED light source device packaging and LED application lighting products integrating R&D, design, production and sales in China. The company provides customers with “integrated” solutions for high-quality LED light source devices and LED application lighting products. Since 2013, the LED industry as a whole has seen a situation where revenue has increased without profit. For the company's future development and continued competitiveness, the company decided to transform digital marketing. The division of the huge digital marketing cake began with the acquisition of Nissho Optoelectronics. The company is firmly optimistic about digital marketing: sufficient market space; a rapid growth trend; a relatively stable and clear business sector in the Internet field. In August 2014, the company acquired 100% of Nikkami Optoelectronics's shares. Nisshami Optoelectronics is a leading enterprise in the field of LED advertising and signage lighting in China. It is a downstream LED enterprise. It mainly engages in outdoor advertising and signage lighting systems for airports, train stations, etc., and decided to transform the digital marketing field this year. The acquisition of Nisshang Optoelectronics will help the company quickly enter the market specialized in LED advertising and signage lighting, achieve resource sharing and complementary advantages, enhance the core competitiveness of the company's lighting business, and achieve leapfrog development. “Two and one input” is beginning to show ambition, with the intention of building an ecological chain for the entire digital marketing industry. In November of this year, it was announced that the company plans to acquire 100% of the shares of Dingsheng Yixuan and Yiwan Wireless. At the same time, it also participated in blog advertising. The three Internet companies invested in are mainly engaged in advertising business. Therefore, in order to accelerate the development of the entire digital marketing industry chain of “upstream creative planning - data mining (DSP) - advertising - media”, the company's future mergers and acquisitions will focus on the three directions of creative planning, DSP, and media. The company's recommendation logic: 1) Transform digital marketing on the basis of the original LED business. The LED business will become a stable source of revenue and profit, and in the future, an independent team will be used to develop digital marketing business. 2) Strong team execution and effective development of new business. The company has two mergers and acquisitions teams, two investment directors, and 8-10 main mergers and acquisitions personnel. Among them, the investment director, Mr. Huang Gang, is an expert in Internet communications. 3) The team structure is stable and interests are bundled. The company issued 700 million yuan privately in April, of which 400 million were subscribed by controllers, company executives, and middle management, and the company's development team is fully confident. The recent reduction in shareholders' holdings is a non-corporate-level factor and is a personal act. Profit forecast and valuation analysis: The company's original LED business is growing steadily, and new digital marketing businesses are expanding. We expect 2015-2017 revenue to be 1,011 million yuan, 1,560 billion yuan and 1,720 million yuan respectively; net profit is 112 million yuan, 168 million yuan and 186 million yuan respectively, corresponding to the diluted EPS in 2015-2017 of 0.46, 0.69 yuan and 0.77 yuan respectively. The valuation level given to the company's industry average, 71 times PE in 2016, a target price of 48.99 yuan, and an increase in holdings. Risk warning: The company's digital marketing business falls short of expectations.