Key points 1. It won the bid for advertising and management rights for Shanghai Line 16 and continues to promote the Grand Transit Wi-Fi strategy. Shanghai Rail Transit Line 16 involves 58.96 kilometers of subway lines, including 13 stations. The company's advertising management rights cover train advertisements, in-station advertisements, and outdoor advertisements. The purpose of the company's acquisition of advertising management rights is to promote the public transportation Wi-Fi strategy, and the implementation of this project will greatly promote the public transportation Wi-Fi strategy. As a strategic investor, Huihuang Technology has a broad presence in the transportation Wi-Fi field, participating in outstanding companies in various segments of the transportation Wi-Fi field, and is committed to creating a closed loop of mobility. The future vision is to connect every aspect of travel through a unified account. The company is currently the first company to lay out the entire transportation Wi-Fi industry. With the completion of the entire transportation Wi-Fi network, it will also benefit from the development of the entire industry in the future. 2. The company's main business will continue to benefit from the boom in railways and subways during the “13th Five-Year Plan” period. Railway investment will remain high as an important way to stabilize the economy and promote growth. The total transit mileage of subways in various cities across the country during the 13th Five-Year Plan period may exceed 4,000 kilometers, which means that the total mileage of newly built subways during the 13th Five-Year Plan period will exceed our current fleet. The company's main business is all in the railway construction information engineering stage. The railway side benefits from railway investment and preservation. In terms of urban rail, the company has established an urban rail company. With its own technical advantages and construction experience, we are optimistic about the company's development in the subway field. 3. The majority shareholders' holdings increase and employee shareholding plans demonstrate development confidence. The company plans to issue no more than 68,502,350 RMB common shares to Mr. Li Haiying and Ms. Yuan Yaqin through a non-public offering, with an issue price of 14.89 yuan/share. After issuance, the majority shareholders will account for 28.34% of the company's shares; the “Hongta Asset Brilliant 1 Specific Multiple Client Asset Management Plan” subscribed by the company's first employee shareholding plan has an average transaction price of 14.67 yuan/share, and the number of shares purchased accounts for 4.51% of the company's total share capital. The majority shareholders' holdings increase and employee shareholding plans clearly reveal confidence in the company's long-term development. 4. Investment suggestions: As a target beneficiary of railway informatization, the company benefits from the boom in railway construction in the 13th Five-Year Plan and continues to advance towards urban rail transit. We predict that the company will achieve net profit of 140 million, 169 million, and 216 million in 16-18, corresponding EPS of 0.37, 0.45, 0.57 yuan, and PE of 45X, 37X, and 29X, maintaining the recommendation. 5. Risk warning: The growth of the rail transit industry falls short of expectations, and the mass transit Wi-Fi strategy falls short of expectations.