Core view: The additional distribution plan was approved, and the company has an advantage in entering the photovoltaic industry. On June 8, the company's 850 million additional distribution plan was approved by the Securities Regulatory Commission, paving the way for the company to further advance into the photovoltaic industry. As the most qualified and powerful decoration enterprise in the industry, the company has its own advantages in the fields of design, installation and construction. Based on the favorable policy environment and market prospects of the photovoltaic industry, the company positions photovoltaic power generation as the second priority development business. It can accumulate experience and combine it with existing building energy-saving renovation business to cultivate new profit growth points for the company in the future field of photovoltaic building integration (BIPV). The photovoltaic industry has received multiple policy support. Using photovoltaic power generation as a clean energy source, which has entered a stage of rapid growth, can effectively resolve the contradiction between traditional energy shortages and increasingly serious environmental pollution problems, so there is a strategic need for development. According to the “13th Five-Year Plan” new energy plan opinion draft, China will add 15 million kilowatts to 20 million kilowatts of photovoltaic installed capacity every year, continuing to maintain the strongest growth in the world. The total utilization volume will reach about 160 million kilowatts by 2020, and there is a huge incremental market. Furthermore, with the advancement of technology and the decline in costs, the market's approval of photovoltaics will gradually increase, and market space will open up accordingly. In addition, the combination of photovoltaics and buildings is also an effective way to solve the energy consumption problem of buildings and make buildings greener and more intelligent. In a sluggish environment in the decoration industry, the company's performance achieved a strong breakthrough, and investment suggests that China's photovoltaic industry will usher in a period of rapid growth in the next five years. The combination of photovoltaics and construction will also be a key technology for greening and intelligent buildings. Under the overall pressure and transformation of the decoration industry in 2015, the company's performance was able to achieve strong growth, and in terms of transformation, it chose to lay out the photovoltaic power generation field as the company's future development strategy. First, it can take advantage of the rapid development of the photovoltaic industry, and second, it can accumulate experience in the field of photovoltaic construction. At the same time, the company is small, and there is plenty of room for growth in valuation. We are optimistic about the determination and prospects of the company's transformation. We expect the company's 2016-2018 EPS to be 0.76, 0.95, and 1.14 yuan (not considering future expansion and dilution), maintaining the “buy” rating. Risks suggest that business expansion is lower than expected, and investment growth continues to decline.