According to Wanrun Technology (002654) Quarterly Report, the company achieved revenue of 189 million yuan from January to 2016, an increase of 78.54% over the previous year, higher than the average revenue growth rate of 16.72% in the optoelectronics industry; net profit attributable to shareholders of listed companies was 8.3 million yuan, up 279.23% year on year. Based on long-term accumulation and deep understanding in the field of LED packaging, Wanrun Technology has gradually extended its industrial chain from LED light source device products in the packaging field to LED lighting products. In 2016, the company will increase investment in R&D. LED packaging and LED lighting research and development will keep up with the needs of cutting-edge markets, and actively lay out and explore market segments with high added value, such as smart homes, infrared touch screens, rail transit, rail transit and airports, and military special lighting. The company currently has obvious advantages in commercial lighting and engineering lighting business. Home lighting is the focus of its future development, while also developing foreign markets and launching its own brands. The company's LED lighting business is expected to continue to grow by more than 30% over the next 3 years. While maintaining the growth of traditional business performance, the company began to lay out the Internet advertising and media business. The acquisition of Nisshang Optoelectronics was completed in June 2015 and entered the LED advertising and signage lighting field. On the basis of relying on the original traditional advantageous business, combined with research and judgment on the development trend of the industrial chain, the development direction for further extension to downstream advertising media was established. Profit forecast: The penetration rate of LED lighting in the next few years will gradually increase. The company's products are high-end, which can effectively avoid the impact of the price war on the company's performance, and digital marketing will form a new profit growth point. We expect the company's revenue for 2016-2018 to be 1.29 billion yuan, 18.8 billion yuan, and 2.44 billion yuan, and net profit attributable to shareholders of the parent company is 1.35, 1.89, and 248 million yuan, corresponding to EPS of 0.56, 0.78, and 1.03 yuan, respectively. Give it an “increase in holdings” rating. Risk warning: The company's LED lighting business performance declined; the company's mergers and acquisitions integrated Dingsheng Yixuan, Yiwan Wireless, and the stock exchange blog advertisement fell short of expectations.