Core view: 1. The company completed the transformation of its main business in 2016. After nearly a year of collaborative development, it has become a leading Internet advertising media company in China. The company currently has a three-in-one Internet advertising media industry chain ecosystem of mobile Internet traffic entrances, traffic management platforms, and commercial monetization channels. Mobile traffic entry: Using mobile Internet traffic entrances such as Falcon Network, Zhanghui World, and Spigot, and at the same time cooperating widely with third parties to aggregate mobile Internet traffic; mobile traffic management platform: Through integration and upgrading of domestic traffic management platforms (Falcon Network) and overseas business platforms (Spigot), it is converted into traffic with high commercial value. Commercial monetization channels: Traffic is exported to companies with strong commercial monetization channels at home and abroad, including Falcon Network (including subsidiary game company Fantasey), Yifu Information, and Spigot, etc., and then accurately distributed to advertisers or developers with monetization needs in various industries such as advertising, gaming, e-commerce, reading, etc., to achieve traffic monetization. 2. The acquisition company performed well and maintained relatively rapid growth. The company's 2016 operating income was 2,364 million yuan, and net profit was 316 million yuan. The company's revenue for the first quarter of 2017 was 1,192 billion yuan, up 1973% year on year, and net profit was 123 million yuan, reversing losses year on year. Net profit is expected to go back to 210 million to 250 million in the first half of 2017, an increase of 142.4% to 188.5% over the previous year. 3. Zhidu Depu, the largest shareholder of the company, gathers industrial capital from various sources. Zhidu shares are the only listed company controlled by the majority shareholders. Zhidu Depp's partners include well-known domestic financial institutions, listed companies, and private enterprises to invest. 4. In the future, the company will continue its “endogen+extension” layout to build a global online advertising media group. Consolidate the foundation of advertising agency business, expand the scale of advertising trading platform business, cultivate the Internet new media matrix, and continue to expand upstream and downstream of the industrial chain; continue to promote a global development strategy, use SPIGOT as the core business platform, and continue to increase overseas business investment and related mergers and acquisitions. 5. The company has been given a “buy” rating for the first time: The company has formed a comprehensive layout of the Internet advertising industry chain. With the strength of the majority shareholders and professional management team, it will continue to develop in terms of endogenesis and extension in the future to build a global online advertising media group; the company has sufficient capital reserves and zero interest-bearing debt, providing solid support for the company's expansion. We forecast that the company's net profit for the period 17-18 will be 490 million yuan and 640 million yuan respectively, EPS will be 0.51 yuan and 0.66 yuan, and corresponding PE will be 30 times and 23 times, respectively, giving it a “buy” rating for the first time. 6. Risk warning: increased competition risk in the online marketing industry, post-merger integration risk, risk of domestic and foreign M&A policy uncertainty