Guide to this report: The commercialization process of CBA has accelerated markedly. It is expected that the Xunxing Men's Basketball Club, a group company, may turn a loss into a profit. The progress of injecting listed companies is expected to exceed market expectations. The company is expected to become a leader in the A-share sports service industry, increasing its holdings and ratings. Investment points: Maintain an “overweight” rating. Maintaining the forecast for 2015-17 EPS of 0.23/0.27/0.31 yuan, referring to leading companies in transformation, and considering that Xunxing Men's Basketball Club's progress in injecting listed companies is expected to exceed market expectations and give a valuation premium. The target price is 15.0 yuan, corresponding to 55.6 times PE in 2016. The commercialization of CBA is clearly speeding up, and the market space is huge. 1) On January 16, 2016, Yao Ming took the lead in establishing the middle basketball team. On January 19, the Basketball Association followed suit in establishing the CBA League company, and the CBA commercialization process accelerated markedly. 2) Referring to the NBA and the Chinese Super League, it is expected that after commercialization, the profitability of basketball clubs will increase dramatically. Club revenue will shift from league shares, titles, etc. to diversified revenue models such as league shares, broadcast revenue, sponsorship revenue, ticket revenue, and stadium operations. 3) Revenue from the NBA2014-15 season reached 5.5 billion US dollars, and the average market value of NBA teams reached 1.1 billion US dollars in 2015. After the commercialization of CBA basketball clubs, there was huge market space. It is expected that the commercialization of CAB will accelerate the Xunxing men's basketball club from loss to profit, and the progress of injecting listed companies is expected to exceed market expectations. 1) Xunxing Men's Basketball Club is still losing money, making it more difficult to inject into listed companies. Due to the current slump in the main business performance of Xunxing Co., Ltd., if basketball clubs that are still losing money are injected into listed companies, it will inevitably drag down the listed company's performance. 2) It is expected that Xunxing Club will easily inject losses into listed companies, but since 2016, the CBA commercialization process has accelerated, and clubs under the group company will greatly benefit from CBA commercialization and are expected to turn losses into profits. It is expected that the company has the potential to become one of the leading companies in the A-share sports service industry. Club and stadium operations are the two main components of sports services. If the Xunxing men's basketball team is injected into listed companies, it will become a scarce sports service target for A-shares, and it is hoped that the capital market will be used to integrate the industry. Risk warning: Xunxing men's basketball team, a subsidiary of the group, fell short of expectations, and the main zipper business deteriorated, etc.