“LED+ Sports” is two-wheel drive, and the performance growth is solid and strong. In the first half of 2016, the company achieved operating income of 251 million yuan, an increase of 49.41% over the same period last year, and realized net profit of 26.6455 million yuan, an increase of 34.40% over the previous year. The company actively expands the LED business in overseas markets and continues to consolidate its leading position in LED displays, lighting and other fields. The company has participated in many international exhibitions, and the high-tech LED screen products exhibited have been well received, laying a solid foundation for the company to further expand the international market. The subsidiary Tuoxiang Technology participated in famous exhibitions such as the American International LED Lighting Exhibition and the Frankfurt Lighting Fair in Germany, and continued to expand the overseas lighting market. Since the beginning of the year, industry market demand has picked up, prices in the upstream chip and midstream packaging sectors have stopped falling, and lighting product prices have stabilized. Combining the effects of the above factors, the company's LED business achieved revenue of 220 million yuan during the reporting period, an increase of 46.67% over the previous year. In terms of sports business, the company continued to accelerate the deployment of the soccer field, forming an interconnected soccer industry chain of “sports marketing resources+sports media+player agency+soccer club+mobile internet”. The monetization capacity continued to increase. The company's sports resources achieved sales revenue of 258.23,700 yuan during the reporting period, an increase of 77.15% over the previous year. The strategic value of the company's LED and sports business development is highlighted, the value of sports resources is gradually reflected, and performance growth is solid and strong. By opening up the marketing chain, the sports business has entered a period of rapid profit. The company has increased the marketing of sports resources, further sold LED screen advertising rights for the Chinese Super League and Chinese League 1 stadiums; and transferred to Shenzhen Renren Football Club the rights of the company's overseas program for being named in the Portuguese League. Through the monetization of sports marketing resources, the company's sports business revenue has been increased. As the second largest sports marketing company in the world, Yingfang Group injects Swiss Yingfang's assets, draws on international giants to provide synergies for the company's sports marketing business, helps the company use each other's sports resource advantages to expand and improve the company's sports industry chain, provides lessons and experience for the company's soccer sports media business, and enhances the company's position and market size in the sports industry. Through the strength of the marketing chain, the company's soccer industry chain has become more complete, and the sports business has entered a period of rapid profit. Profit forecast. In the future, the company will continue to improve the layout of the soccer industry chain, work to integrate commercial resources in the soccer industry chain and develop commercial value, and increase the business income and profit level of the sports industry. Future prospects: 1) Under the unprecedented popularity of the Chinese Super League industry, the value of the Chinese Super League's resources is really what is called “leading resources, scarce value,” and subsequent commercial scalability is strong. 2) Use professional investment institutions to actively seek suitable targets for epitaxial expansion, test the waters of sports brokerage, and realize the monetization of overseas sports resources. 3) Use the Portuguese League 1 and Australian Super League to leverage the overseas high-tech LED stadium display market to help increase the asset value and influence of Lehman's own overseas brands. Based on the huge development space of China's sports industry and the performance commitment of Tuoxiang Technology, we expect the company's EPS for 2016-2018 to be 0.20 yuan, 0.26 yuan, and 0.33 yuan, respectively. Considering that the company's business is deeply deployed in the sports field and that future expansion expectations are strong, the valuation should increase accordingly. Also, for reference, Jiuzhiyang, who also has transformation expectations, agreed that PE in 2016 was 117.94 times. We gave the company a valuation of 115 times in 2016, corresponding to the target price of 23.00 yuan. Maintain the buy rating. Risk warning: market competition risk; merger and acquisition integration risk.