Report Summary: A leading company in the outdoor leisure furniture industry. The company's main products are three types of outdoor leisure furniture, umbrellas, and tents, which account for about 93% of revenue. The products are mainly sold to developed regions such as North America and Europe. In 2015, the company's revenue growth rate was 7.3%, profitability was relatively stable, and gross margin remained at 22% to 23%. The company's business activities have relatively obvious seasonal characteristics. March to September is the peak sales season, September to May of the following year is the peak production season, and November to May of the following year is the peak shipping season. In an environment where the renminbi depreciates, companies will directly benefit. The company's business is mainly overseas sales. The product cycle from order placement to receipt of remittance is generally 6 to 9 months, and changes in the exchange rate of the US dollar to the RMB have a large impact on the company's revenue. The impact of exchange rate fluctuations on the company's performance is mainly due to two aspects. First, the depreciation of the RMB will increase the company's revenue from the signing of overseas sales orders to the confirmation of revenue; the second is that the depreciation of the RMB will reduce the company's exchange losses during the period from when sales revenue forms accounts receivable until foreign exchange collection. Switch to air ticket travel services and create a “furniture+travel” dual main business. The company acquired Beijing Liantuo Tianji and held 60% of its shares. Beijing Liantuo is mainly engaged in tourism-related business, providing distribution of tourism resource products and financial settlement services to enterprises in various sectors of the tourism industry, mainly through its 51book platform, including air ticket distribution platforms, travel distribution platforms, and airline holiday agency operation platforms. 51book has focused on air tickets and travel distribution services for nearly 10 years. Its business covers individual air tickets and the provision of distribution service solutions. It earns revenue by collecting transaction commissions and providing service solutions. Currently, it has established long-term strategic partnerships with Air China, China Eastern Airlines, and Mountain Airlines. Company profit forecasts and investment ratings. The company is a leading enterprise in the outdoor leisure furniture industry. It lays out the air ticket travel service industry through extended acquisitions, forming a “furniture+tourism” dual business pattern. We expect the company's operating income from 2016 to 2018 to be 3.81 billion yuan, 4.08 billion yuan and 4.37 billion yuan respectively; EPS is 0.25 yuan, 0.3 yuan and 0.33 yuan respectively, and corresponding PE is 32x, 27x and 24x respectively; giving the company a target price of 10 yuan/share for 6 months, coverage for the first time, giving the company a “highly recommended” investment rating.