The participating company, Dongqian Weihai, participated in the Millennium Design Settlement Increase. It held 3.75% of the shares indirectly. The company announced that its participating company Dongqian Weihai would subscribe for 10 million shares issued by Millennium Design for 100 million yuan. The company announced on January 5 this year that it plans to use no more than 67.5 million yuan to cooperate with Zhejiang Dongqian to jointly initiate the establishment of a merger and acquisition fund, accounting for 37.5% of the initial size of the fund. The main business of the fund is to invest in equity in target companies in upstream and downstream related industries in the construction sector. The Millennium Design of Dongqian Wai Haishen Co., Ltd. is an investment in the field of front-end design for the company's construction. We judge that the company not only benefits financially, but can also improve the company's competitiveness in receiving orders. Millennium Design is at the front end of the engineering industry chain. The technical and technological content High Millennium Design is a comprehensive design company dedicated to providing “integrated” design services for various types of professional projects for urban construction and integrated urban and rural construction in China. Its main business includes design consulting services in various fields such as urban planning and design, architectural design, municipal and highway engineering design, landscape design, water conservancy design, survey design, etc. The main business carried out by the company specifically has the characteristics of the modern service industry. It is in the upstream link within the engineering industry chain, has high technical and technological content, and has obtained Class A qualifications in all major business fields. Millennium Design earned 212 million yuan in 2015, with a total profit of 55.38 million yuan. With differentiated competition in the second main business, it is worth expecting that the company's second main business will be mainly film, television, and games, focusing on building a service chain for the industrialization process. In the culture and entertainment industry, the company will provide specialized services throughout the process from upstream to downstream, including but not limited to insurance and guarantees, original content tool platforms, market research and big data analysis, production supervision and process control, early rapid prototyping and post-production special effects, distribution/channel/traffic integration, and IP protection. Revenue from this service was not affected by the quality of film and television productions and market reactions until the work was released, and business revenue was stable. The profit level of the entire industrial chain before contract production was impressive. In terms of animation games, using Lezuo Entertainment as a platform, it has two major advantages in product and operation. The fixed increase has been approved, and performance acceleration can be expected. The company announced on January 9 that it has received approval from the Securities Regulatory Commission for the non-public offering of shares, which is valid for 6 months. This fixed increase raised a total of 2.47 billion yuan, mainly for the company's investment in construction-handover projects and PPP projects. The company's current non-public offering price is 7.87 yuan/share, and the number issued is no more than 313.85 million shares, raising a total of 2.47 billion yuan. Raising capital helps ensure the smooth completion of projects, optimizes the company's capital structure, and enhances the company's profitability and core competitiveness. The company will hold a shareholders' meeting on January 20 to review the “Proposal to Extend the Validity Period of Shareholders' Meeting Resolutions on the Non-public Issuance of A-Shares”. We have determined that its private offering will be completed in the near future. The stock price has a high margin of safety, and there is long-term investment value. The actual controllers and executives of the company who raised their ratings to “buy” ratings increased their shares by 8.33% in January of this year through asset management plans, at a cost of 522 million yuan, at an average price of 8.61 million yuan; the majority shareholder Weihai Holdings subscribed for 1.5 billion yuan to increase their share by 60%. Currently, the stock price safety margin is large. With the inflection point in performance and the implementation of the second main business, the company's performance and valuation in 2017 are expected to both rise. We expect the 2016-18 EPS to be 0.13/0.34/0.48 yuan, and the three-year CAGR +77%. Recently, due to market adjustments, the company's stock price has been lowered. Due to the company's long-term investment value, our previous target price of 11.3-12.6 yuan was maintained, and it was raised to a “buy” rating. Risk warning: The signing of PPP projects fell short of expectations, and cash flow continued to deteriorate.