Xinghui Entertainment: “Games+Toys+Sports” creates an interactive entertainment industry group: Starlight Entertainment is a leader in the domestic car model toy industry. Since its establishment in 2000, it has first established its central position in the toy segment, and then gradually explored various entertainment segments. Currently, the company is mainly developing the game industry, has certain game research and development capabilities, and has formed a pan-entertainment industry group in related fields such as “games+toy models+sports”. Game business: The flow of a variety of boutique games has exploded, and it is expected to enter a period of performance harvesting: the company's games currently focus on both mobile games and page games. The game business accounts for more than 45% of revenue, surpassing the toy business. The company is increasing its investment in games. In terms of games, it lays out the SLG product line, the legendary product line, the MMORPG product line, and the leisure category. The product types and game reserves are diverse and rich. In September 2017, “Legend of the Three Kingdoms: Legend of the King” was launched. The half-month flow exceeded 100 million yuan, and the turnover for the first 30 days reached 155 million yuan. The flow continues to explode, and the life cycle is long. The game is expected to have over 1.5 billion dollars in circulation this year. The two-dimensional placement game “The Age of Blue,” which premiered on March 26, 2018, is currently in the top ten iOS game rankings due to its two-dimensional attributes, and is expected to exceed expectations. In 2018, the company also plans to launch the global SLG “Return to Civilization”, “The Last King”, the MMORPG “Shengtang Magical Night”, and several casual H5 games. Toys+sports: The fine management of the toy business has improved efficiency, and sports have formed a profit channel: the company's toy assembly line is highly automated. As raw material prices rise, toy prices are also rising, and the business has maintained steady development. The current revenue of sports clubs is divided into three parts: commercial sponsorship, game broadcasting rights, player transfers, derivatives, etc. The team has a rich pool of players and has formed a profit channel. Profit forecast: The company boosts the gaming industry, and the turnover is expected to continue to exceed expectations, giving it a “recommended” rating: the company has released a 17-year performance report, with revenue of 2,756 million yuan and net profit of 232 million yuan. We expect the company's 2017-2019 EPS to be 0.19, 0.40, and 0.59 yuan, respectively, net profit of 2.3, 500 million, and 730 million yuan, respectively, and corresponding PE of 29, 13, and 9 times, respectively. Considering that the company continues to improve in the game business, game flow may exceed expectations; in the toy and sports business, the company's shareholders have increased their holdings, we are optimistic about the company's long-term development and have given it a “recommended” rating for the first time. Risk warning: game flow falls short of expectations; traditional business has declined sharply, etc.