The net profit in the interim report increased nearly 10 times, and it is proposed to turn 10 to 10. At 16H1, the company achieved revenue of 1.3 billion yuan (more than 98% from mobile marketing business), a year-on-year increase of 247.02%, and net profit to mother of 113 million yuan, an increase of 971.26% over the previous year; the profit distribution plan was to transfer 10 shares for every 10 shares to all shareholders. The sharp increase in the company's performance was mainly due to the merger of Weiying Interactive and Cloud Time Space in '16, while Jinyuan Interactive's sales revenue increased dramatically. In February 2016, the company officially divested the power surge business to achieve a complete transformation to mobile marketing. The “three controls and multiple participation” model enters the mobile marketing industry. The company's original business was R&D, production and sales of surge protection products, and began the transformation path of mobile marketing in 2014. It has successively acquired mobile internet advertisers Cloud Time and Space, integrated marketing service providers Jinyuan Interactive, and Weiying Interactive. At the same time, it has taken shares in high-quality Internet companies such as Xiaozi Technology, Shuangxing Line, and Zangzhong Technology, and has initially set up a mobile marketing layout. During the reporting period, in terms of mobile internet search engines and media advertising agencies, the company ranked as Baidu's five-star core agent in 2015-2016, and became the country's largest agent for Baidu Mobile Assistant for four consecutive years; became a leading national agent for media such as Xiaomi, Vivo, LeTV, and OPPO; cooperated with more than 600 content providers, 900 channels, and more than 2,000 promotion apps, and an average of 5.5 million daily active users, SSP ( (Supply-side advertising platform) The average number of impressions per day is over 100 million, and the products distributed have an average of about 300,000 new users per day, which is at the leading level in the industry. We believe that by integrating the customer and media resources of internal subsidiaries, the company has initially achieved good synergy effects. Continue to expand externally and improve the strategic layout of the industry. In January 2016, Mingjia Hong Kong, a wholly-owned subsidiary of the company, subscribed for 1.81% of TAPJOY's shares for $5 million. TAPJO has the world's leading motivational in-app advertising platform. The number of registered apps exceeds 300,000, the average number of monthly active users is about 500 million, and 10 million advertising projects are launched every day. This investment helps the company understand the overseas mobile internet marketing market and operating model, and lays the foundation for developing overseas business. In addition, the company also participated in Internet companies such as Beiming Technology, Le Shake Technology, Zongheng Tianya, Farmhouse Brothers Agricultural Technology, and Smart Promotion Network to improve the layout of the industrial chain. Reorganize Kidz Technology and online and offline, and enter the field of big data applications. On July 30, 2016, the company announced that it plans to spend 1 billion yuan to acquire 86.5% of Xiaozi Technology's shares (previously 13.5%) and 90% of online and offline shares (previously 10%) to enter the field of big data applications. Currently, it is still in the review stage. If the merger and acquisition can be successfully implemented, the company will change from “three controls” to “five controls”, and the business layout will gradually be enriched, and at the same time, it can promote the application of big data technology in mobile marketing and business intelligence. Profit forecast. I am optimistic about the company's comprehensive transformation into the mobile marketing field after divesting its power surges business. Net profit returned to mother is estimated to be 345 million and 410 million yuan respectively in 17 and 18, and the corresponding EPS is 1.08 yuan and 1.28 yuan, respectively. If we consider the merger of Xiaozi Technology and online and offline acquisitions, the net profit for the 17th and 18th exam preparation was 455 million yuan and 555 million yuan, and the latest share capital corresponding to fully diluted EPS was 1.29 yuan and 1.58 yuan, which gave a valuation 40 times over 17 years, corresponding to the target price of 51.6 yuan, and a purchase rating. Risk warning: risk of impairment of goodwill; mobile marketing business development falls short of expectations.