There has been significant growth in mergers and acquisitions, and the sports business is developing well. The company's operating income for January-September was 404 million yuan, up 57.71% year on year; net profit attributable to shareholders of listed companies was 41.08 million yuan, up 41.89% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 33.51 million yuan, up 31.84% year on year. Among them, operating income for the third quarter of this year was 153 million yuan, up 73.48% year on year; net profit attributable to shareholders of listed companies was 14.43 million yuan, up 58.18% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 10.53 million yuan, up 20.27% year on year. The significant increase in revenue and profit was mainly due to the inclusion of Tuoxiang Technology, which completed the acquisition at the end of 2015, in the scope of the financial report merger. The company has developed well in the field of sports resource development and marketing. In the first three quarters, sports resources achieved sales revenue of 42.47 million yuan, an increase of 27.08% over the previous year. At present, the company has achieved full coverage of Lehman LED displays for 16 Chinese League 1 clubs. It has long-term business development rights in the Chinese League 1 field, and is expected to benefit from the continuous increase in the commercial value of the Chinese League 1. Acquired shares in Huashi New Culture and started the subway television media business. During the reporting period, the company completed the acquisition of 49% of Huashi New Culture's shares, paid 380 million yuan in cash, and announced the completion of industrial and commercial changes in early September. Huashi New Culture operates the subway television media advertising business that originally belonged to Huashi Media (Huashi Media transferred its entire subway television media advertising business into Huashi New Culture using December 31, 2015 as the transfer base date), and currently operates subway television media advertising business in 19 cities across the country. This move will help to further promote the company's sports industry development strategy. Profit forecasts and investment advice. The company's net profit for 2016-2018 is estimated to be 0.60/0.81/105 million yuan, and EPS is 0.17/0.23/0.30 yuan respectively, corresponding to 103/77/59 times PE, respectively. We are optimistic about the company's future development strategy for LED and sports, and maintain the “buy” rating. Risk warning. The market competition in the LED lighting industry is fierce; there is uncertainty about sports resource development, marketing, and media business development, and short-term valuations are too high.