Event: Strategically teaming up with China Education Television, “brand+platform” to promote the development of music education Pearl River Piano issued an announcement stating that the “strategic cooperation agreement” was signed with China Education Television. The two sides will give full play to the platform+brand effect and establish a long-term and close cooperative relationship in the fields of education, music, real estate and media based on the principles of “complementary advantages, resource sharing, mutual benefit and win-win situation, and common development”. Complementary advantages and all-round cooperation, and joint efforts to lay out the art education industry. According to the agreement, the two sides will cooperate in kindergartens, training, capital, educational industrial parks, and “double innovation” cooperation. Among them, in terms of kindergarten business, China Education Television is responsible for providing comprehensive solutions and specific operations for kindergartens, while Pearl River Piano relies on brand advantages and regional influence in the field of music to select school venues suitable for joint kindergarten operation in corresponding regions (the first pilot will land in Guangzhou) and provide piano equipment; in terms of training business, China Education Television is responsible for integrating TV platform display and various media resources as a project. In terms of capital cooperation, both sides own exports of offline channels such as communities and sales outlets; in terms of capital cooperation, both sides own exports Special funds in the field of “big education, big culture” have also been invested in high-quality projects, and in-depth discussions and cooperation are being sought later; in terms of education industrial parks, the two sides use their respective high-quality resources to jointly build an industrial park with the theme of music education, and jointly coordinate the acquisition of industrial park plots by the local government to carry out development and construction; in addition, the two sides will also jointly create music-themed incubators, host related competitions, and select and train music teachers from university students. We believe that as a media platform under the Ministry of Education, China Education Television has a large amount of high-quality education, media, and customer resources. Pearl River Piano has been promoting the development of art education business in recent years. A strong alliance between the two will accelerate the development of the company's art education and training business, which is of great significance in promoting the development of the domestic art education market. Profit forecasts and investment recommendations estimate that the company's net profit for 2017-2019 will be 176, 220, and 284 million yuan, corresponding to 67.5, 54, and 41.8 times PE according to the latest closing price. Given that the company is a leader in art education in China, cultural education business growth can be expected, and state-owned enterprise reform is conducive to improving operating efficiency and maintaining a “buy” rating. Risks suggest that the reform process of state-owned enterprises has fallen short of expectations; the profit situation in arts education has fallen short of expectations.