The key investment is to transform LED companies in digital marketing. The company's original main business was LED packaging and applied lighting. In recent years, the LED industry has been fiercely competitive, and the company's profit pressure is high. The company is actively seeking transformation. It plans to invest a total of 740 million yuan to acquire 100% of the shares of Dingsheng Yixuan and Yiman Wireless, and has invested 30 million yuan in 21.4% of the shares in blog advertising to accelerate its entry into the field of digital marketing. Digital marketing is in the 100 billion market, and industry concentration is expected to increase. 1) The digital marketing market is huge. The domestic market size is expected to reach 419.8 billion yuan by 2018, with a compound growth rate of about 20% over the next three years. Internet advertising has become the mainstream form of advertising in China, and is showing the development trend of diversification of marketing forms, diversification of customer types, mobile terminals, and multi-screen integration. 2) Programmatic purchasing has become an important transaction model in the advertising market. Increased demand for data analysis capabilities, product functions, and service capabilities will raise the industry threshold. Coupled with the trend of mergers and acquisitions integration in the industry, the digital marketing industry will gradually become concentrated. The layout of the company's entire digital marketing industry chain is accelerating. 1) Dingsheng Yixuan is a leading domestic home decoration search advertising service, the exclusive agent of Baidu KA's home decoration and 360 real estate home industry, mainly providing big data, SEM and new media marketing services, with a net profit of over 30 million yuan in 2015; 2) Yiman Wireless provides one-stop mobile Internet marketing services and has carried out in-depth cooperation with Internet giants such as Tencent, Baidu, and Jingdong. The net profit in 2015 is about 41.8 million yuan, with a high level of profitability and the ability to integrate long-tail traffic; 3) Participating blog ads provide interaction with brand companies and female vertical industry customers Full online marketing service, net profit exceeded 10 million yuan in 2015. 4) Dingsheng is strong in search and big data, hundreds of millions of operations, and blog posts are good at planning ideas. The collaboration and complementarity of the three is the key layout of the company in building a digital marketing ecosystem. In the future, the company will continue to build a digital marketing enterprise in the entire industry chain integrating creative planning, technology platforms, data mining, wireless distribution, media resources, and customized services for advertisers through mergers, acquisitions and restructuring. Positioning high-end services and improving LED profitability. The company's LED lighting business cooperates with high-end customers in various fields such as finance, communications, consumption, media, etc., and its products have obtained many certifications at home and abroad, and supply its own light source devices, making the gross margin level of lighting products even higher. The acquisition of Nisshi Optoelectronics promises a net profit of more than 50 million yuan over the next two years, which will effectively enhance the profitability of the company's lighting business. Valuation and ratings: The company's digital marketing layout is clear, the transformation is firm, and the profitability of the LED business has improved. The compound net profit growth rate for 2015-2018 is expected to be 63.7%, covering the first time, giving it an “increase in holdings” rating. Risk warning: risk of merger and acquisition company performance falling short of promises; risk of diversified business integration or failure to meet expectations; risk of original main business or insufficient growth rate.