Investment highlights: Two major asset restructurings were completed in 2016, the main business was successfully transformed into Internet marketing, and the acquisition company's performance was outstanding. In 2016, the company achieved revenue of 2,364 billion yuan (+644.37%) and net profit of 316 million yuan (+8922.67%), of which the acquisition of the company Falcon was also included in May-December, and Spigot was included in the financial data for June-December; according to exam preparation statistics, the company achieved revenue of 3,245 million yuan in 2016, net profit of 340 million yuan; the company's acquisition of subsidiaries Falcon Network, Yifu Information, and Spigot completed performance promises with net profit of 121 million yuan, 47 million yuan and $26 million respectively. 2017Q1 achieved revenue of 1,192 billion yuan (+1972.89%) and net profit of 123 million yuan, reversing losses year-on-year and maintaining a rapid growth trend. Divestment the original instrumentation business and build a mobile advertising ecosystem centered on traffic operations. In 2016, the company purchased Star Instruments at a price of 144 million yuan and divested its traditional business. Main transformation directions: 1) Traffic operation and application distribution: The acquired FMOBI platform under Falcon Network is dominated by information flow advertising, concentrates on the native advertising industry chain, and provides mobile advertising traffic trading services through programmatic methods such as real-time bidding; targeting accurate target users for advertisers through in-depth big data mining, scenario pattern matching, and real-time advertising bidding; 2) Internet marketing business: Yifu Information uses diverse marketing methods to customize and implement targeted integrated marketing plans for customers on the demand side, and has independently developed a “million customers” platform on the supply and demand side. Gather various types of Internet media inventory traffic to help media maximize traffic monetization; 3) Overseas business: Spigot connects global advertisers and software developers, is committed to the development, application and distribution of Internet software, and enhances gross margin levels through the operation of its own traffic; 4) Online gaming: Relying on subsidiary Fantasey to carry out R&D and operation of mobile games and page games to achieve transformation and monetization of its own traffic. Relying on the FMOBI platform+Spigot traffic management platform, we will build a trinity full ecosystem business model. After the restructuring of the company's major assets, two complete mobile Internet traffic management ecosystems were formed, with domestic FMOBI and overseas Spigot's traffic management platform as the core. They include three levels: 1) Mobile Internet traffic entry, which will use the acquired mobile Internet traffic portal assets to cooperate extensively with third parties to aggregate large-scale fragmented and contextualized traffic. 2) The mobile Internet traffic management platform converts own traffic into traffic with high commercial value by integrating and upgrading the domestic traffic management platform represented by the FMOBI platform and the overseas traffic management platform represented by the Spigot traffic management platform; 3) Commercial monetization channels are exported to companies with strong commercial monetization channels, including Falcon Network, Yifu Information, and Spigot, and then accurately distributed to advertisers with monetization needs such as advertising, games, e-commerce, reading, etc., and achieve traffic monetization by creating high commercial value. In the future, we will rely on “endogeny+extension” to create a leading international Internet advertising media. 1) Adhere to the development strategy of globalization. With SPIGOT as the core business platform, we gather overseas traffic and continue to increase overseas business investment and related mergers and acquisitions; 2) On the endogenous side, we rely on existing companies to vigorously lay out our own media matrices, improve the level of advertising technology and R&D, upgrade our own advertising trading platform, and strengthen our leadership position in search engine marketing business and information flow advertising; 3) From the external side, we actively consider strategic mergers and acquisitions opportunities, mainly in the fields of corporate traffic operations and digital marketing. Profit forecast: We expect the company's operating income for 2017-2019 to be 4,592 million, 6.316 billion and 8.245 billion yuan, respectively, and net profit of 489 million, 623 million yuan and 804 million yuan respectively, corresponding to EPS of 0.51 yuan, 0.65 yuan and 0.83 yuan, respectively. Referring to the 2017 PE unanimous expectations of comparable companies in the same industry, we gave the company a valuation of 36 times that of 2017, corresponding to a target price of 18.36 yuan. The first coverage gives a buying rating. Risk warning: risk of declining product competitiveness, risk of loss of core personnel, risk of high goodwill balance.