Event: The company released its 2016 three-quarter report. Comment: The company's performance is growing rapidly. 1) The company achieved revenue of 397 million yuan in 16Q3, up 102.52% year on year; achieved net profit of 87.09 million yuan, up 206.70% year on year; total revenue from January to September was 810 million yuan, up 30.38% year on year; net profit to mother was 133 million yuan, up 65.45% year on year; 2) The company's net profit from 2016 is expected to be between 223 million yuan and 293 million yuan, up 60%-110% year on year. Sales and management cost rates have both risen and fallen, and financial expenses have increased dramatically. 1) In January-September, the sales expense ratio fell from 7.67% to 5.11%, and the management expense ratio increased from 8.28% to 11.21%. The overall cost ratio did not change much after one liter fell. 2) Financial expenses increased from 22.47 million yuan to 57.3 million yuan, mainly due to interest accrued on new loans and bonds issued in the current period. The path of mergers and acquisitions around big culture strategies continues to advance. The company Q3 plans to acquire 90% of the shares of Pageview (at a price of 668 million yuan) in the form of share+cash; it also recently purchased 3% of Qishu Youyu's shares (mainly engaged in online movies) with 10.5 million yuan in cash. Continued outreach acquisitions confirm our previous judgment, and we expect the company to continue to invest more around the big culture strategy. Profit forecast and rating: The company's net profit for 2016/17/18 was 248/441/506 million yuan respectively, fully diluted EPS was 0.31/0.54/0.62 yuan, and PE corresponding to the current stock price was 60/34/29 times, respectively. We expect that in the future, the company's investment in the fields of film and television/music/games/literature/education will continue to increase, and that multi-business linkages will continue to improve. Therefore, there is still plenty of room for the company to improve its future performance, and it will continue to maintain a “gain” rating. Risk warning: The acquisition fell short of expectations, the manufacturing business continued to decline, and competition in the cultural sector intensified.