Summary of the report:

The company's income in the first three quarters was 1.52 billion yuan, an increase of 143% over the same period last year. The net profit of shareholders belonging to listed companies was 161 million yuan, an increase of 377% over the same period last year. The net profit of shareholders of non-listed companies was 151 million yuan, an increase of 399% over the same period last year.

Stand out in the numerous field of Internet marketing, is expected to exceed the performance commitment. According to the announcement, Shanghai Xinhe promised to realize net profit after deduction of 130 million yuan in 2016 and 87.45 million yuan from January to September, accounting for 67.27% of the promised performance. Shanghai Qiangchuang promised to achieve net profit of 87.5 million yuan in 2016, 82.52 million yuan from January to September, and 94.32% of the promised performance. Shanghai Linbo promised to achieve a net profit of 50 million yuan after deduction in 2016 and 42.75 million yuan from January to September, accounting for 85.51% of the promised performance. We believe that in the past two years, a large number of listed companies have transformed the Internet marketing industry through acquisitions, but not a few of them have changed their performance after the tide of capitalization. In the second year of the performance commitment period, the company is still expected to exceed the promised performance, reflecting the firm transformation of the chairman of the company, strong ability to coordinate internal interests, excellent texture of the acquired target, and truly realize the transformation of the company from the chemical industry to the Internet. Active expansion, extension can be expected. At the strategy conference held in the middle of the year, the company put forward the development direction of big data and IP content. We believe that these areas are of high concern in the capital market at present, and with the rich experience and strong operational ability in the advertising industry, the company's involvement in these areas is no longer conceptual hype, but closely around creating incremental value for advertisers to achieve profitability. We believe that with the deepening of the company's integration, the company is expected to expand into newer areas and realize its performance in the future.

Profit forecast and investment rating: we expect the company's EPS 0.40 yuan 0.65 and 0.75 yuan in 16-18, corresponding to 68 times, 42 times and 37 times PE, maintaining the "recommended" rating.