Key investment points LED companies transform into digital marketing. 1) The company's original business was LED manufacturing. In June 2015, it was officially acquired and listed as Nisshang Optoelectronics to enter the LED advertising and lighting field, beginning the path of extension from LED product manufacturing to the advertising industry; 2) The company announced on November 3 that it intends to acquire 100% of the shares of Dingsheng Yixuan and Yiwan Wireless to participate in 21.43% of Botu Advertising's shares, and truly transform into a digital marketing company. Dingsheng Yixuan: A vertical search engine marketing service provider in the field of home decoration. 1) The company is an exclusive distributor of Baidu Home Decor KA (major customer). Specifically, it can also be divided into three categories: SEM services, big data services, and new media services; 2) There are many downstream advertiser customers, including Oupai, Shichuang, Easyhome, Yizhi, Yizhi, Shangpin Home Delivery, Shengxiang Floor, Marco Polo, etc. Billions Wireless: Focus on mobile internet marketing. The 100 million wireless business is divided into two types: online promotion and offline promotion: 1) The online promotion business can be mainly divided into four parts: cooperating with Tencent AppBao to promote app applications, introducing advertisements to mobile websites, cooperating with app clients such as Today's Headline and Momo to share media resources, and increasing user coverage through channels such as SDK advertising platforms; 2) Offline promotion mainly provides pre-installed services for advertisers' app applications. Botu Advertising: An internet full-case marketing service provider focusing on female vertical industry customers. The company focuses on providing full-case marketing services from planning, creativity, media delivery to data mining, effect optimization, platform construction and operation for brand enterprises and female vertical industry customers. Profit forecasting and ratings. Considering Dingsheng Yixuan, Yiwan Wireless, and Botu advertising by Xinshen Holdings, the company's 2015/16/17 fully diluted EPS was 0.51/0.61/0.74 yuan (EPS is estimated to be 0.25 yuan in the 15-year report), corresponding to the current PE price of 72/60/50 times. Considering the high growth of the beneficiary industries and the possibility of continued industrial integration, the valuation level is expected to drop significantly. We continue to be optimistic about the company's future development potential in the digital marketing industry, and for the first time, we have given a “gain” rating.