Core view The company's performance achieved a strong breakthrough in a sluggish environment in the decoration industry. The company's revenue and profit growth rate in 2015 was close to 20%, and a strong performance breakthrough was achieved in the face of the downturn in the decoration industry. The company's momentum is expected to continue. Due to the improvement in the main decoration industry and the expected revenue generation of photovoltaics in the first half of this year, the company expects a net profit increase of 30% to 60% in the first half of 2016. If the median value is taken, the second quarter will increase by 54.06% year-on-year in a single quarter, which is at a high level during the same period. The cost ratio has remained stable, and the cash flow has deteriorated. The layout of PV construction is a profit growth point for the company in the future. The company positions the photovoltaic power generation industry as the second priority development business. The company can accumulate technical experience in photovoltaic installation and construction through current power plant projects, gain a competitive advantage for developing integrated photovoltaic construction business in the future, and cultivate new profit growth points in the company's single main decoration business. The renovation of old buildings has advantages. Urban renewal ushered in the completion and use of the company's old building renovation project “Ruihe Design and Research Center Building”, which became a model example of green and energy-saving renovation of old buildings. At present, the company has signed orders for the renovation, design and construction of old buildings, such as the CTV Fengde Copyright Industrial Building renovation and renovation project, and is following up on many old renovation projects, maintaining a leading edge in the stock market competition. Investment advice It was not easy for the company to achieve stable and continuous growth in performance in the face of the overall downturn in the building decoration industry in 2015. In a situation where the decoration industry as a whole is under pressure and one transformation after another, the company is in an orderly manner at the pace of transformation. Choosing to lay out the photovoltaic power generation field as the company's future development strategy, you can not only enjoy the rapid development trend of the photovoltaic industry, but also combine it with existing old building renovation business to get ahead in the field of photovoltaic building integration (BIPV) and seize market opportunities. At the same time, the company is smaller, more flexible, and has more room for valuation growth. We are optimistic about the company's determination and prospects for transformation. We expect the company's EPS to be 0.76, 0.95, and 1.14 yuan in 2016-2018, maintaining a “buy” rating. Risks suggest that business expansion falls short of expectations, and investment continues to decline.