The “10 gigabit network chip” was successfully developed, making it a reality for radio and television networks to enter 10 gigabit IP households at low cost. The “10 gigabit network chip” uses advanced 40nm technology, low power consumption and small size. The transmission bandwidth of the radio and television network has been increased by 4 times, reaching 10,000 megabytes of household bandwidth. To improve the quality of network transmission, channels can be screened smoothly and quickly under the transmission capacity of 1000 sets of television programs. The technology can also provide high-bit-rate, high-definition, ultra-high-definition, 3D, 4K and other broadcast and on-demand video, the Internet, gigabit fiber data interaction, voice and video communication, online medical care, online teaching, online e-commerce, and home security, and other smart home services, which play an important role in promoting the competitiveness and business level of the radio and television industry. The industry-wide promotion of Jishi Huitong's fiber-optic household access products lays the foundation for the company's “Internet+Business Content” strategy. Jishi Huitong relies on the mass production layout of a series of products such as “10 gigabit network chips” and “fiber-optic integrated intelligent access gateways” to comprehensively enhance the company's strategic transformation and product penetration capabilities. The company will use the “I-PON” standard as a favorable opportunity to promote the national “C-FTTH technical specification for cable television networks (C-FTTH)” standards, etc., to provide convenient conditions for the company to cultivate rich and high-quality live video broadcasts, Internet video on demand, social information services, terminal product sales, etc. in an environment of intense market competition, and build new business models and profit growth points. Enter the field of education, lay out content marketing, and create a complete set of cloud service products for education informatization. With strong support from the Jilin Provincial Department of Education, Jishi Media will step up cooperation with the government, continue to collect quality education resources, and provide a complete set of cloud service products for education informatization to more than 7,000 elementary schools, middle schools and high schools, and 2.8 million students in Jilin Province. The company will provide students with interactive on-demand broadcasting of high-quality teaching resources in both school and home scenarios, set up an all-optical education network, rely on Huitong set-top boxes to achieve full coverage within the class range, promote sharing of teaching resources, and promote educational fairness. The company lays out educational content marketing to help the company transform and upgrade. Multiple industries are being carried out together, and the sector layout continues to be upgraded. In recent years, in addition to being mainly engaged in cable television services, the company has also formed three major sectors: “main business innovation,” “financial investment,” and “cultural tourism.” Among them, the “content innovation” section uses its subsidiary Jishi Media and Culture Industry Investment Company to lay out the source content side, improve the industrial chain, and achieve collaborative development between content products and the business platforms of listed companies. Investment in the “financial investment sector” involves and covers many financial investment fields such as commercial banks, private equity investment funds, internet finance, supply chain finance, venture capital, and asset management. The “Cultural Tourism Division” develops tourism resources through its subsidiaries. Currently, the company's sector layout continues to be upgraded, expanding its business map. Profit forecast. In 2016, the company will still adhere to the development direction of “outstanding main business, multiple industries combined”. Main business side: Vigorously develop value-added services with high-definition interactive services as the core, make every effort to consolidate the steady development of basic users without loss, and comprehensively increase the market share and penetration rate of value-added services. In addition to this, the company will also actively deploy new media and new businesses such as smart home shopping, and continue to lay out the three major sectors of “main business innovation,” “financial investment,” and “cultural tourism.” We expect the company's EPS for 2016-2018 to be 0.14 yuan, 0.15 yuan, and 0.16 yuan, respectively. Also, in the same industry, the 2016 PE expectations of Radio and Television Network, CITIC Guoan, and Huashu Media were 43.40, 55.57, and 40.51 times respectively. We gave the company a valuation of 37 times in 2016, corresponding to the target price of 5.18 yuan. Give an increase in holdings rating. Risk warning. General market systemic risk; risk of corporate transformation falling short of expectations.