Seek the transformation and upgrading of the media industry to complete the strategic positioning of urban lifestyle service providers. In the context of the traditional newspaper industry being continuously impacted by new media, the company comprehensively adjusted its marketing strategy in 2015 and established the strategic development direction of “an urban lifestyle service provider with modern media clusters as the core platform”. The company is gradually transforming from traditional print media to modern media. In 2015, the company's new media grew rapidly, with print media users reaching 1 million. Non-newspaper revenue has already surpassed print media revenue, and the company has already migrated from print media to mobile connectivity, and from PC to mobile internet. Acquire the future of Chinese education and expand the field of vocational education. Since 2011, the Chinese Internet education market has been growing at an annual rate of more than 28%, and has been rising year by year. The average compound growth rate between 2010 and 2014 reached 33.1%. In 2014, China's Internet education market reached 84.1 billion yuan, and it is estimated that China's Internet education market will reach 19.8 billion yuan in 2017. The company is optimistic about the broad development prospects in the field of vocational education, and will lay out the education industry ahead of schedule in the future through the holding acquisition of China Education, and expand its business to the field of vocational education services. The future of Chinese education has rich experience and professional teams. It is committed to optimizing and integrating idle teaching resources in colleges and universities, exporting education services such as enrollment, teaching, practical training, employment, etc., and jointly organizing cooperative education programs with colleges and universities in vocational education, international education, etc., to achieve an asset-light operation model. At present, stable cooperation has been established with more than 20 colleges and universities. Integrate resources, achieve strategic coordination, and improve the location of urban life services. China Media Holdings and China Education Future are in the field of big culture and media. There is some commonality and similarity in business types, main audiences, etc. The company can use its industry position and influence as a party newspaper and media to provide necessary help to China Education in future university customer development, and provide strong support in business management, financial planning, and brand promotion. In the future, China Education's large group of offline students can also develop into the company's online users through reasonable means. Valuation and investment advice: Industry level: Optimistic that China Media Holdings will use vocational education as an entry point to cooperate with China and education in the future. We believe that the vocational education market space is huge, and market demand and supply are still seriously misaligned in terms of content and quantity; China's economic development depends on industrial upgrading and structural adjustment, and demand for highly skilled talents, new technology talents, and continuing education talents will continue to heat up. Against this backdrop, the country's economic, regulatory, and support policies for vocational education, especially applied vocational education, and continuing education for adults, will continue to be implemented and promoted. Company level: China Media Holdings is gradually transforming from traditional paper media to modern media, acquiring China Education to enter the field of vocational education in the future, and the growth of mergers and acquisitions is remarkable; at the same time, we are optimistic about Hangzhou's cultural industry foundation and policy support, and the positive impact of major events such as the Asian Games and G20 on the company. The company's 2016-2018 EPS is expected to be 0.26, 0.30, and 0.32 yuan/share, respectively, covering the first time and giving it an increase in holdings rating. Risk warning: transformation falls short of expectations; market competition risk