Incident: The company recently signed the “Digital Art College Cooperation Agreement” with Guangxi Information Technology Vocational College. The two sides jointly established the Digital Art School of Guangxi Information Technology College to jointly train digital art design talents. After graduation from the college, they will obtain academic certificates issued by the state. Core idea: lay out school-enterprise cooperation and extend the industrial layout horizontally. The company and the school jointly set up a mixed-ownership college with an enrollment target of 3,000 students, specializing in digital media art design, interior art design, video and television multimedia technology, film and television animation; the cooperation period is 20 years, the five board member companies of the new college account for 3, and the company provides 55% of the operating capital of 5.5 million yuan; the company is responsible for providing investment and construction including classrooms, dormitories, and cafeterias. The company has full rights to run the school grounds. The two parties will sign a campus lease agreement after the construction of the school building is completed. We believe that the company can use its excellent teaching resources and use a new school-enterprise cooperation model to help give full play to the resource advantages of both parties, further expand the brand advantages of the company industry, and expand the company's revenue channels to drive continuous performance growth. The industrial chain continues to expand horizontally and vertically around the field of art and design. The company purchased 80% of Kaimo Vision's shares at a price of 340 million yuan. It is committed to the integration of technology and art. It is an emerging film and television special effects creative and production company integrating early creation, on-site guidance, and post-stage special effects production and technology research and development. The two sides are expected to make deep partnerships in talent transfer, training content, brand promotion, and industry resource sharing to expand and strengthen the art design ecosystem to gain growth opportunities. Meanwhile, in March '18, the company established Sun Company's Little Mars Company to expand the course audience to young people, laying the foundation for the company to expand its industrial layout in the future. We are optimistic about the Martian era as a leader in art education, and we hope to fully enjoy the opportunities for continuous growth brought by the growth of the digital creative industry. Profit forecast and valuation: We expect the company's net profit for the 2018-2020 exam to be 2.05/2.54/315 million yuan, the corresponding EPS is 0.52/0.64/0.80 yuan/share, and the corresponding PE is 16/13/11 times. We are optimistic that the company will expand and strengthen the art design training ecosystem through endogenetic+extension, giving the 18-year education sector 25 times, the traditional main business 20 times, and giving a target market value of 4.7 billion dollars. There is still 44% space corresponding to this, and maintaining a highly recommended rating. Risk warning: exchange rate risk, merger and acquisition integration falling short of expectations, sharp decline in traditional main business