Investment points: For the first time, coverage was given an “increase in holdings rating”. We are optimistic that the company will enter the media and entertainment industry through Meishengyuan. In the future, it is hoped that the entire “pan-entertainment” industry chain will be built through business expansion and subsequent acquisitions. We forecast the EPS for 2016-17 to be 0.41 or 0.69 yuan. Referring to 49 times the PE valuation of comparable companies, we gave the company a target price of 20.00 yuan, covering the “increase in holdings” rating for the first time. The acquisition of Meishengyuan was completed, and Entertainment Media's first order was placed in June 2016. The company spent 3.4 billion yuan to complete the acquisition of Meishengyuan, a mobile game development and distribution company, and successfully entered the media and entertainment field. We are optimistic about the development trend of mobile games led by the application of Internet technology, the popularity of mobile terminals, and the fragmented entertainment needs of modern people. We believe that Meishengyuan's core competitive strength lies in its ability to link R&D and operation terminals. At the same time, the continuous increase in the layout of medium to heavy games and premium IPs also highlights the company's long-term vision and precise strategic decisions. The “pan-media” layout is beginning to take shape. We believe that Meishengyuan will be the first step in the “pan-media” layout that the company is striving to create. Through Meishengyuan, it is possible to strengthen its layout in the IP field, achieve video and video game linkage, and expand its peripheral products. It is also expected that it will later enter the field of variety and entertainment, create a complete “pan-entertainment” industry chain layout, and achieve great strides in development. The main decorative panel business remained stable. The company has been deeply involved in the field of high-end decorative veneer materials for many years, and is a leader in the domestic decorative paper industry. Benefiting from the recovery of the real estate market, the company's 2016 Q1 performance has bottomed out and rebounded. We believe that decorative paper is irreplaceable in the field of building decoration. At the same time, potential incremental demand in the field of public building decoration will also help keep market demand stable. It is expected that the decorative paper business can provide stable support for the company's performance. Risk warning: Meishengyuan's performance promises fell short of expectations, and downstream demand for decorative paper declined sharply.