Incident: Radio and Television Network announced on July 22 that the company received approval from the Science and Technology Department of the State Administration of Press, Publication, Radio, Film, and Television. The company was included in the pilot project for radio, television, cable and wireless convergence networks by the General Administration. The wired and wireless integrated network will provide important support for the development of television wireless, digitization and intelligence of information applications, and achieve full coverage of television networks and data networks. Combining the advantages of optical fiber networks, IDC, and radio and television radio frequencies, the company's ability to provide e-government, enterprises, and individual users with services such as private e-government networks, public Internet access, and television networks has greatly improved. Investment points: The radio and television network has been included in the pilot wired and wireless integrated network pilot project, which will further enhance its strength in networking. The company has gained key capabilities to expand into the wireless network field, and efficiently collaborate with the development of the company's fiber-optic two-way cable networks and Internet data centers. After the network strength is greatly enhanced, the company's Internet business related to the Internet operating on the Internet is expected to have greater value output. Reason: (1) The development of the wireless field has received significant support, expanding from TV screens to mobile phone screens with greater value. The company's original related business was based on television broadcasting services and corresponding television networks. After receiving wireless support from radio and television, its network business is expected to expand rapidly to mobile terminals such as mobile phones. Compared to the era of cable and optical fiber access, where value-added Internet services are developed around television terminals, cable access restrictions are smaller, more users can access, and market penetration capacity has been greatly enhanced. Currently, the value of Internet value-added services on mobile phones is greater, and companies can use this to rapidly expand to mobile terminals such as mobile phones and tablets on the basis of locking down TV terminals, thus gaining more high-value users. (2) Incremental changes in wireless networks stir up huge stocks of wired networks, and catalytic reactions evoke a collaborative explosion at the cloud management end. Wired and wireless integration, based on high-quality high-speed optical fiber networks, has brought about a collaborative explosion of customer needs, network traffic, and data center business. Promote an increase in the migration rate of the company's 6 million cable television network household users to new businesses with greater added value: network traffic is exploding, and the value effect of the information highway is showing: the richness of business content in data centers is rapidly increasing. (3) Cooperate with the government to take the lead in building value reservoirs and develop opportunities in rural depressions of equal value. In relatively backward regions such as rural areas, it is more difficult to develop the cable television business, and it is even more difficult to promote new value-added businesses in the future. The company actively cooperates with the government, and can obtain a stable long-term income through the purchase of services by the local government. What is more important is that the government purchases services, which is conducive to advancing network construction according to high standards from the beginning, building a reservoir of value for the long-term development of value-added Internet services, and seizing opportunities in rural and other value depressions. The radio and television wired and wireless convergence network pilot project has brought continuous impetus to it, and the company's development is expected to enter the fast track. First coverage, giving a highly recommended rating. The estimated EPS for 16-18 is 0.29, 0.37, and 0.47 yuan, and the PE corresponding to 16-18 is 52x, 42x, and 33x, respectively. Give 70 times PE in '16, with a target price of 20.30 yuan.