Event: Pearl River Piano released the report for the third quarter of 2017, the company announced the three-quarter report of 2017: the first three quarters of 2017 achieved operating income of 1,336 billion yuan, a year-on-year increase of 14.62%; net profit attributable to shareholders of listed companies was 128 million yuan, up 11.22% year-on-year; of these, 2017-Q3 achieved revenue of 490 million yuan in a single quarter, an increase of 13.49%; net profit attributable to shareholders of listed companies was 36.67 million yuan, up 12.51% year on year; at the same time, the company expects net return to parent in 2017 Profit was 151-197 million yuan, up 0-30% year on year. We believe that the company's three business segments, piano, education, and media are progressing steadily, and the performance is in line with market expectations. The three sectors developed collaboratively. As the piano manufacturer with the largest annual output in the world, the company's main piano business structure continued to be optimized and actively promoted the high-end of the piano industry; teamed up with Alibaba Cloud to develop the post-piano service industry chain to create a cloud service platform for Pearl River musical instruments, focusing on the stock market for post-piano services and the potential incremental market for music users; the education sector layout continued to deepen, increasing the advantages of running schools through the quality education curriculum system and digital piano teaching, targeting the blue ocean market in the art education industry; holding subsidiary Emmerson held the first batch of mixed shares in Guangdong Province enterprise During the reporting period, strategic investors, management and core employees were introduced to invest in shares through the implementation of capital increases and stock expansion, and it is proposed to apply for listing on the new third board. The shareholder structure was further optimized, increasing employee enthusiasm, which is conducive to improving Amosun's governance level and profitability, and broadening financing channels; the company signed a “strategic cooperation agreement” with China Education Television, which will give full play to the platform+brand effect and establish long-term and close cooperative relationships in the fields of education, music, real estate and media. In addition, during the reporting period, the company also successfully completed the non-public stock offering, raising a net capital of 1,061 billion yuan. Profit forecasts and investment ratings estimate that the company's net profit for 2017-2019 will be 1.82, 2.21 and 281 million yuan, and EPS (after dilution) of 0.17, 0.21 and 0.27 yuan, corresponding to 68.1, 56.2 and 44.2 times PE, respectively, according to the latest closing price. Given that the company is a leader in art education in China, the benefits of the big culture platform are worth looking forward to. At the same time, state-owned enterprise reform is conducive to the continuous improvement of the company's operating efficiency and maintaining the “buy” rating. Risks suggest that the reform process of state-owned enterprises has fallen short of expectations; the profitability of the arts education and media businesses has fallen short of expectations.