Conclusions and suggestions: Electronic audio companies seek transformation. The electronic business expression of H16 companies is relatively weak. Revenue YOY is -2%, net profit fell 14%, and 2Q revenue and net profit fell by 17% and 3%, responding to a relaxation in the growth rate of consumer electronics demand. The company aims to acquire spring integration and Lehua culture. The target company has deep cooperative relationships with well-known entertainers and directors, has high-quality cultural and entertainment resources, and has promised a net profit of 400 million yuan in 2017, which will clearly help the company's performance. Based on the assumption that the company will expand its film and television culture business, it is estimated that in 2016-2017, the net profit ratio will be 190 million, 440 million, YoY will increase by 879% and 133%, and the corresponding EPS will be 0.24 yuan (thin) and 0.56 yuan (thin); currently, the stock price is 64 times and 28 times (weak) for PE, and the valuation is relatively reasonable, and the investment proposal for holding is. 1H16 net profit decreased 14%, but gross margin increased: 1H16 realized revenue of 320 million yuan, YOY decreased 1.8%, realized net profit of 7.89 million yuan, YOY decreased 14%, after deducting net profit of 4.71 million yuan, after deducting net profit of 4.71 million yuan, YOY increased 93.4%. Corresponsibly, in 2Q16, the company's revenue was 160 million yuan, YOY fell 16.8%, realized net profit of 5.36 million yuan, and YOY fell 3%. The company's main business expression is relatively weak. In terms of gross margin, the consolidated gross profit margin of the H16 company was 30.3%, an increase of 6.3 percentage points over the same period last year. Among them, the 2Q16 consolidated gross profit margin was 31.8%, an increase of 7.5 percentage points over the same period last year. The company also issued a 1-3Q16 earnings forecast. The net profit range is estimated to be 10.59 million yuan to 15.13 million yuan, and YOY will drop 30% to maintain, corresponding to net profit of 2.7 million yuan to 7.24 million yuan for 3Q16. Develop and develop the film and television culture business: The company plans to issue no more than 418 million shares (equivalent to 116% of the current share capital), raise 3.27 billion yuan to acquire shares in Spring Fusion and Lehua Culture and use 1 billion yuan for future film and television drama filming. The target company has extensive cooperation with famous entertainers such as Huang Bo and director Guan Hu, and is a high-quality cultural and entertainment resource. At the same time, the target company agreed that 2016 revenue and net profit were divided into 1.6 billion yuan and 310 million yuan, and 2017 revenue and net profit were divided into 2.07 billion yuan and 400 million yuan, which will have a significant impact on the company's performance improvement. Profit estimation: Based on the assumption that the company will expand its film and television culture business, it is estimated that in 2016-2017, the net profit ratio will be 190 million, 4.4 million, YoY will increase by 879% and 133%, and the corresponding EPS will be 0.24 yuan (thin) and 0.56 yuan (thin); the current stock price for PE is 64 times and 28 times, and the valuation is relatively reasonable, and the investment proposal for holding is.