Investment points The company announced that it has received a “Advance Notice of Administrative Punishment” from the Shanghai Supervisory Bureau of the China Securities Regulatory Commission and imposes fines on company executives. Currently, the company has been investigated and investigated by the Shanghai Regulatory Bureau of the China Securities Regulatory Commission for “suspected information disclosure violations,” and the investigation has been completed, and there is no situation where the company is prohibited from issuing shares privately. The risk of filing a case has been basically eliminated, and the factors limiting valuation are expected to be removed: on April 29, 2016, the company announced that a case was filed and investigated by the China Securities Regulatory Commission and that there is a risk of suspension of listing. The company's stock price fell to a standstill the next day. We believe that the uncertainty brought about by filing the case is the most important reason for limiting stock prices in the short term. The “Advance Notice on Administrative Penalties” announced today has basically eliminated this uncertainty, and there is upward elasticity in valuation. According to the content of the “Advance Notice on Administrative Penalties” mentioned above, the listing of the company's shares will not be suspended or terminated as a result, and the investigation and trial of the company has been investigated and completed by the Shanghai Regulatory Bureau of the China Securities Regulatory Commission due to “suspected information disclosure violations.” There are no situations where the company is prohibited from publicly issuing shares. The main business operates steadily and actively tries to transform the “Internet +” industry: the company is in the upper reaches of the tobacco industry chain. The main business is vacuum aluminized paper, and is actively extending the industrial chain to the downstream tobacco label industry. Performance growth is basically in a stage of steady growth. Against this background, the company is actively experimenting with transformation to seek new profit growth points. Judging from the direction of the company's transformation, it is basically related to the Internet. Factors limiting valuation have been eliminated, and there is upward elasticity in stock prices: the company currently has a market capitalization of 5.7 billion yuan and a net profit of 143 million yuan in 2015. Considering the growth space brought about by future transformation, we believe that the stock price is underestimated. With the announcement of the results of this case filing investigation and the disappearance of related uncertainties, the company's stock price is expected to be revalued, and the stock price is showing upward elasticity. Maintain the “Overweight” rating. The company's main business is growing steadily, and the company is actively experimenting with business transformation to seek growth impetus. We are optimistic about the company's future growth space. We expect EPS in 16-17 to be 0.25 yuan and 0.28 yuan, corresponding to PE 33 times and 30 times, maintaining the “increase in holdings” rating. Risk warning: Company transformation falls short of expectations