The guide to this report: Is the company the only listed sports company? The national team has an obvious advantage in monopolizing resources and has achieved the layout of the entire industrial chain. The majority shareholder equity transfer will soon be completed, which will improve operating performance and re-inject vitality into the enterprise. Investment highlights: First coverage, giving an “increase in holdings” rating. The sports industry is the absolute leader, and equity transfers open up space. It is estimated that in 2016-2018, the revenue that the company can achieve is 114 million yuan, 121 million yuan and 128 million yuan respectively; the realized net profit is 55 million yuan, 81 million yuan and 90 million yuan respectively, up -29%/48% and 12% year-on-year respectively, and the corresponding EPS is 0.06 yuan/0.10 yuan and 0.11 yuan respectively. First coverage, a target price of 31.49 yuan was given,? Accumulated holdings? ratings. The company is the only listed company controlled by the State Administration of Sports, and has a clear first-mover advantage in resource monopoly. The company's business covers all major branches of the sports industry, namely China Olympic Sports (event operation), China Sports Competition (venue operation and consulting), China Sports Force (leisure and fitness), China Sports Broker (sports brokerage and consulting), China Sports Huao (ticket agency and event promotion), and China Delta (sports equipment). The monopoly advantage of sports resources is obvious. The sports industry will still focus on resources, and enterprises within the system will be the first to receive institutional dividends. Production factors, including athletes, coaches, and stadiums, form direct monopolies at the state level, while communication channels and quality IPs form indirect monopolies. Under policy impetus, enterprises within the system will be the first to benefit. The equity transfer is imminent, and Phoenix Nirvana is looking forward to being reborn. The controlling shareholder, the Sports Fund Management Center of the General Administration of Sports, will transfer all shares held through a public offering, which will re-inject vitality into the enterprise and reduce agency costs while improving operating performance. The transferee will use the company's existing resources and experience in event management and operation, stadium operation management, leisure and fitness, sports brokerage, sports lottery, etc., and cooperate with the injection of a new corporate governance concept and corporate culture to ride the tide of industrialization and achieve the return of the king. Risk warning: There is a risk that the sports industry will not develop as expected, and the risk that the company's sports business will not meet expectations.