The company is a rising star in home textile companies. It positions itself in the mass market to highlight fashion trends, and uses franchise stores in second- and third-tier cities in central China as the main channel. Against the backdrop of slowing industry growth, performance has stabilized, e-commerce is growing rapidly, and supporting production capacity is gradually improving supply chain management. Solve the pain points of IP monetization, launch a DIY customization platform using textiles as carriers, join hands with star IPs to create peripheral products, and use the Internet and pop culture to adapt to the major trend of consumer goods upgrading. Key investment points: The home textile industry has maintained single-digit growth, the market is highly fragmented, and the region is obvious. In 2014, the size of China's textile market was 26.5 billion yuan, an increase of 6% over the previous year. On the one hand, home textiles have high durability and low consumption frequency; on the other hand, they have outstanding functional requirements. The pursuit of high-quality fabrics requires products to be antibacterial, mildew resistant, warm and breathable, and the sense of design and individuality weakens, thus forming a highly homogenized and extremely decentralized pattern. The company is centered in central China, and concentration is expected to increase further in the future. The company's half-year revenue slightly exceeded expectations and achieved double-digit growth, stable performance, rapid growth in e-commerce channels, and gradual release of independent production capacity. Upgrade the scale and image of direct sales channels, strengthen the control of franchise channels, and actively expand group sales channels. The construction of the Changsha Industrial Park progressed smoothly, and began contributing to independent production capacity, introducing automated equipment to reduce labor costs, shorten the supply cycle, and maintain brand quality. The company develops a customized market and lays out IP monetization in a two-pronged manner. First, based on the HBDIY internet platform, we develop derivatives using T-shirts as the main carrier, covering bedding, pillows, eco bags, mobile phone cases, etc., with graphics as personalized content. Second, create a “well-known derivative” operating service provider, use textiles as the main carrier, and cooperate with well-known IPs (stars/literature/animation/games/movies/TV series, etc.) to develop peripheral products. Using star IP as an entry point, leveraging the fan economy, it is backed by Hunan Radio and Television Media to enrich its IP resources, and has obtained genuine authorization to design, produce and market peripheral products. Various celebrity events (shows, film conferences, signing events, meetings, etc.) and strong fan bonds have spawned demand for high-quality peripheral products with high frequency and high number of participants. Investment advice: The net profit for 2016-2018 is predicted to be 0.43/0.46/0.55 billion yuan, EPS is 0.36/0.38/0.46 yuan, and the target price is 48.6 yuan, giving it a “recommended” rating. Risk warning: Terminal sales are sluggish; transformation falls short of expectations; risk of piracy of peripheral products.