Key investment events: The company released its 2016 mid-year report. Comment: 2016H1's performance declined slightly. 1) In the first half of the year, the company achieved operating income of 1.55 billion yuan, a year-on-year decrease of 5.73%; net profit of 64.62 million yuan, a year-on-year decrease of 12.35%; net profit attributable to the mother, regardless of non-recurring profit and loss, was 50.45 million yuan, up 3.90% year on year. 2) The decline in performance was mainly due to the company's optimized customer management and the decline in traditional outdoor media business, which led to a decrease in business revenue in the digital marketing and public relations and advertising sectors (12% and 28% respectively), while expenses increased significantly during the period. Extend more effort and move forward steadily. 1) The payment of YOKA's first capital increase of 174 million yuan has been completed: YOKA is the number one Internet fashion media in China. The company acquired 69.76% of its shares with 581 million yuan in cash, expanding the scale of the digital media agency business while consolidating the strength of the content marketing sector through its fashion content system. 2) In terms of content marketing, the company has a 12.6% stake in Signal, a Korean entertainment content company, and has strategic cooperation with Storm (which has a large number of signed influencers). Coupled with the company's own Huayi Shinbang (offline activities) and YOKA (entertainment content) capabilities, influencer marketing can be expected. 3) In terms of digital marketing, the company is actively expanding overseas markets. The participating industrial mergers and acquisitions fund wholly acquired Smaato, a top US SSP technology company, with US$148 million, and collaborated with Haoye Shanghai to lay out global business. Earnings forecasts and ratings. The company's 2016/17/18 exam preparation net profit was $200/2.38/278 million yuan, EPS was 0.25/0.29/0.34 yuan, and the current stock price corresponding to PE is 35/29/25 times, respectively. The company actively lays out content marketing and international digital marketing represented by influencers. We believe that the company's layout has a forward-looking strategic vision, is optimistic about the company's future development, and maintains a “increase in holdings” rating. Risk warning: M&A integration falls short of expectations; macroeconomic downturn.