Incident: Radio and Television Network announced on July 22 that the company received approval from the Science and Technology Department of the State Administration of Press, Publication, Radio, Film, and Television. The company was included in the pilot project for radio, television, cable and wireless integrated networks. The wired and wireless integrated network will provide important support for the development of wireless television, digitization and intelligence of information applications, and achieve full coverage of television networks without data networks. Combining the advantages of optical fiber networks, IDC, and radio and television radio frequencies, the company's ability to provide e-government, enterprises, and individual users with services such as e-government and networks, public Internet access, and television networks has greatly improved. Key investment points: The radio and television network was included in the pilot wired and wireless integrated network pilot project, which will further enhance its strength in the network field. The company has gained key capabilities in expanding into the wireless network field. The development of non-company fiber-optic two-way cable networks and Internet data centers is efficiently collaborated. After the network strength is greatly enhanced, the company's Internet business related to the Internet is expected to have greater value output. Reason: (1) The development of the wireless field has received important support, expanding from TV screens to mobile phone screens with greater value. The company's original related business was based on television broadcasting services and corresponding television networks. After receiving wireless support from radio and television, its network business is expected to expand rapidly to mobile terminals such as mobile phones. Compared to the era of cable and optical fiber access, where value-added Internet services are developed around television terminals, cable access restrictions are smaller, more users can access, and market penetration capacity has been greatly enhanced. Currently, the value of Internet value-added services on mobile phones is greater, and companies can use this to rapidly expand to mobile terminals such as mobile phones and tablets on the basis of locking down TV terminals, thereby gaining more high-value users. (2) Incremental changes in wireless networks stir up huge stocks of wired networks, and catalytic reactions evoke a collaborative explosion at the cloud management end. Wired and wireless integration, on the basis of high-quality high-speed optical fiber networks, has brought about a collaborative explosion of customer demand, network traffic, and data center business. Promote an increase in the migration rate of the company's 6 million cable television network household users to new businesses with greater added value; network traffic exploded, and the value effect of the information highway was evident; and the business content richness of data centers increased rapidly. (3) Cooperate with the government to take the lead in building value reservoirs and develop opportunities in rural and other value depressions. In relatively backward regions such as rural areas, it is more difficult to develop the cable television business, and it is even more difficult to promote new value-added businesses in the future. Companies are not actively cooperating with the local government, and can obtain stable long-term income through the way the local government sells services. What is more important is that the government buys services, which is conducive to promoting network construction according to high standards from the beginning, building value reservoirs for the long-term development of subsequent Internet value-added services, and seizing opportunities in rural and other value depressions. The radio and television wired and wireless convergence network pilot project has brought continuous impetus to it, and the company's development is expected to enter the fast track. First coverage, giving a highly recommended rating. The estimated EPS for 16-18 is 0.29, 0.37, and 0.47 yuan, and the PE corresponding to 16-18 is 52x, 42x, and 33x, respectively. Give it 70 times PE in '16, with a target price of 20.30 yuan. Risk warning: wired and wireless converged network projects are not progressing as expected; risk of market fluctuations