The company has formed three main businesses: game development and operation, soccer club management, and car model manufacturing. We are optimistic about Royal Spanish Club's performance growth and the steady operation of the company's game business, and have given the company a “buy” rating for the first time. Key points supporting ratings After Wu Lei joined the Espanyol Club, it brought about a significant increase in the club's domestic attention and commercial value, which is expected to drive a sharp increase in advertising sponsorship, ticket sales, and derivatives sales revenue. The company holds 99.35% of the Spanish club shares. Wu Lei joined the Espanyol club and performed well. The number of people watching the Spanish club games in China has increased significantly, which is expected to drive the sponsorship of the Spanish club by domestic companies and the increase in the domestic sales revenue of the Spanish club's derivatives, including jerseys. The Espanyol club is expected to become a platform for domestic players to stay abroad and Chinese and Western soccer cooperation. The company has fully benefited from the commercial development of La Liga in China and the opening up of domestic youth training market space. La Liga has always regarded China as an important market, and has mainly carried out youth training and implementation of sports and entertainment strategies in China. In March 2019, the president of La Liga visited China and signed a series of cooperation agreements with the Chinese Football Association. In the future, soccer between the two countries will cooperate in more fields. Meanwhile, the Spanish, as a La Liga club controlled by Chinese companies, are expected to become a platform for soccer cooperation between the two countries, opening up monetization space in the fields of sports brokerage (operation of Chinese players to stay abroad), sponsorship marketing, and youth training. The game business contributed to stable performance. The flow of “Legend of Heroes of the Three Kingdoms - Overlord's Business” is stable, verifies the company's ability to develop premium games, and has become a performance stabilizer. The overseas market flow of games launched in 2018, such as “The Age of Blue” and “Three Kingdoms M”, is still expected to rise, contributing performance elasticity to the game business. The valuation assumes that the company's game business is running steadily. The Spanish club enters the Europa League in 2019, and team game bonuses, transfers, broadcasts, and sponsorship revenue are expected to increase significantly. The company is expected to achieve net profit of 3.15, 3.85, and 479 million yuan in 2019-2021. The price-earnings ratio corresponding to the current stock price is 20 times, 16 times, and 13 times, respectively, giving the company a “buy” rating for the first time. The main risk facing ratings is the decline in the game business, and the team's record is declining.