Maintain the target price of 20.38 yuan and maintain the "overweight" rating. Due to the increase in total equity due to the completion of the implementation of the fixed increase on September 2, we maintain the profit forecast for the company, but in terms of new equity, the company forecasts an EPS of 0.29x0.35x0.41 yuan from 2016 to 2018 (the previous value is 0.31 pound 0.38pm 0.44 yuan), maintaining the target price of 20.38 yuan and maintaining the "overweight" rating.

Performance summary: according to the company's three-quarter report on October 27th, 2016Q1-Q3 achieved a main business income of 1.801 billion yuan, an increase of 2.46% over the same period last year, and a net profit of 123 million yuan, an increase of 22.62% over the same period last year.

The performance is in line with our previous expectations, and the business continues to grow steadily. 2016Q3 continues the steady growth of performance in the first half of the year. In terms of new business, the cooperation between Oriental Pearl and the company's high-definition interactive business in Shaanxi Province has expanded more than 90,000 users since it was launched in June this year, and the business synergy brought by the war investment has been clearly reflected. It is worth pointing out that the bank loans to be repaid by the fixed increase in September have been fully implemented during the reporting period, and it is expected that the positive effect of this reduction in financial costs on the company's performance year-on-year growth rate will continue in the annual report.

The business cooperation with Battle Investment has entered the stage of full development to accelerate the release of endogenous potential. From a long-term point of view, with the help of the company's leading two-way network foundation, the coordinated development of Oriental Pearl, Tongfang shares, Jiecheng shares and the company in the fields of high-definition interactive business, smart business and education cloud business has entered a stage of full implementation, which will help the company to achieve breakthroughs in new business and performance at the same time, and the growth of the company's cable network is expected to continue to release.

Risk tips: slow expansion of new business, IPTV, OTT and other new media to intensify the risk of competition.