“I Am Not a Medicine Man” premiered at the box office of 300 million, and the movie and TV series are rich in content reserves: the recently released movie “I Am Not a Medicine Man” was a booming box-office hit. On the first day of its release, it grossed over 300 million, which is expected to be an important driving factor for the company's performance this year. In 2018, the company will continue to promote film and television culture business, reserve excellent IP resources, enhance the reputation and value of works, and turn the company into a media group with a whole industry chain. In the company's 2018 film and television drama reserve, there are a total of 21 movies and 24 TV series and web series. In the same period last year, the 2017 phenomenal film “Wolf Warrior II”, co-produced and distributed by the company, broke a new Chinese-language film box office record in China and the world with a box office of 5.683 billion dollars. Originally a local tourism service enterprise, it transformed the film and television culture industry through acquisitions: the company's original main business was local tourism services represented by “Two Mountains and Two Temples” and Longquan Hotel, covering tourist attractions, hotels and restaurants, related travel products, department store wholesale, etc. At the end of 2013, the company fully entered the film and television culture industry through the acquisition of Ferris Wheel Culture Media Company, and has successively acquired companies such as Century Partners for Film and Television and Zhejiang Xinghe, which is an artist agent. The company's top two shareholders, Huali Holdings and Fude People's Insurance, both account for more than 15% of the shares, and six shareholders hold more than 6% of the shares. The layout of the entire film and television drama industry chain goes hand in hand with the tourism service business: the company's main business has now gradually transformed from the original tourist attraction business to the film and television culture business, and has developed into a full-industry chain cultural group covering movies, TV series, web series, artist brokerage, variety shows, new media and tourism culture. The company's film and television culture business mainly includes movies, TV series, online series, artist brokerage, and variety shows. The company cooperates with Legendary Cultural Development Group and Guangxi Guangtou Cultural Tourism Investment Co., Ltd., which focuses on the development and operation of scenic spots, to further expand in the tourism and culture sector. In the future, the synergy between multiple business sectors is expected to create a more stable source of revenue for the company. The rich content reserves maintained steady growth in performance, and for the first time covered the “recommended” rating: we expect the company's net profit for 2018-2020 to be 4.85, 6.40 million yuan, and 814 million yuan respectively, corresponding to EPS of 0.67, 0.88 and 1.13 yuan, respectively. The current stock price corresponding to 2018-2020 PE is 20, 15, and 12 times, respectively. The company has thoroughly laid out the entire film and television drama industry chain. We believe that the company's current rich content reserves are expected to maintain steady growth in performance in the future, covering the “recommended” rating for the first time. Risk warning: The annual box office revenue fell short of expectations, and the regulatory policies of the film and television drama industry became stricter.