Key investment points: the development of both high-tech LED and sports industries, improving the industrial chain layout and boosting performance. The company adheres to the strategic development of both high-tech LED and sports business. On the one hand, it optimizes and consolidates traditional LED business, strengthens domestic and foreign market development and management, and maintains the stable development of LED business; on the other hand, it increases the commercial development and operation of sports resources, and continues to improve the layout of the soccer sports industry chain. In 2016, the company achieved operating income of 562 million yuan and net profit of 30.762 million yuan, up 47.72% and 54.06% respectively from the previous year. In the first quarter of 2017, the company achieved revenue of 140 million yuan, an increase of 29.14% over the previous year. The company has achieved business collaboration through the “LED+Sports” dual main business model, which is conducive to further improving the layout of the industrial chain, which in turn boosts performance. The all-round layout of the soccer industry chain has created a multi-level, multi-channel international sports map. After 6 years of development, the company has now formed a comprehensive layout in the soccer industry chain, and the multi-level and multi-channel international sports map is gradually becoming clear. In 2016, Sports Resources achieved sales revenue of 68.1761 million yuan, an increase of 78.84% over the previous year. 1) In-depth exploration of sports marketing resources. In January 2016, it was exclusively named Lusophone League, becoming the first Chinese company to be named in the European Football League. The shares of the Swiss Yingfang Sports Media Group held by the controlling shareholder were purchased at the original price. In April 2016, it signed a contract with Ford Pay to become the LED display equipment and service provider for the 2016 China Football Association Cup Stadium, and continues to join hands with the International Champions Cup to provide LED high-definition display equipment, maintenance services and commercial editing services. In 2016, the company achieved full coverage of Lehman LED displays for 16 Chinese League 1 clubs, and received sponsorship rights for 30 minutes of advertising time for each home game of 16 clubs in the Chinese League 1. 2) Lay out player agents and soccer youth training. The company integrates resources such as the Portuguese League 1, China League 2, the Australian Super League, the Newcastle Jets Club, and Shenzhen Renren Lehman FC to create a channel for European, Australian and domestic player agents to exchange and youth training; and collaborates with the “12th person” app invested by the company's controlling shareholders to carry out in-depth fan economic value development. Soccer assets are popular, and the company is involved in the core sports business. Scarcity is strong, and market leaders in the industry segment are worth paying attention to. Strengthen LED brand building and promotion, and provide technical support for innovative research and development. The company continues to strengthen market development and brand building, focus on R&D and innovation, and ensure the steady development of the LED business. In 2016, the main LED business achieved a total revenue of 494 million yuan, an increase of 44.26% over the previous year. 1) Actively explore overseas markets. The company actively participated in a series of domestic and foreign exhibitions, such as ISE International Exhibition in the Netherlands and the International LED Lighting Exhibition in the US, increasing the LED industry layout in overseas markets and making the Lehman LED brand spread all over the world. 2) Continue to increase investment in R&D and strengthen technical support. By the end of 2016, the company and its wholly-owned subsidiaries had been authorized and accepted a total of 253 patents; 45 new patents were added, including 31 authorized patents (including 9 invention patents), and 14 accepted patents. The holding subsidiary Kang Shuozhan has launched a new LED elliptical spherical screen, which can surround the display screen in all three dimensions, provide 360-degree visual motion without dead spots, and has a unique creative appearance and high-tech patented technology. The company's solid LED technology provides support for the promotion of the main business and the collaborative development of the sports business, ensuring the company's further in-depth layout in the sports industry. Profit forecasting and valuation. In the future, the company will continue to improve the layout of the soccer industry chain, commit to the integration of commercial resources in the soccer industry chain and the development of commercial value, and enhance the business revenue and profit level of the sports industry. Considering the huge development space of China's sports industry and the advance layout of the company's core business in the sports industry, we expect the company's EPS in 2017-2019 to be 0.22 yuan, 0.32 yuan, and 0.44 yuan, respectively. Referring to the same industry, Shuangxiang Co., Ltd.'s agreed PE forecast for 2017 was 65.15 times. We gave the company a valuation of 60 times in 2017, corresponding to a target price of 13.2 yuan. Maintain the buy rating. Risk warning. Market competition risk, merger and acquisition integration risk.