Investment highlights: events. Major asset purchases were completed during the company's suspension: the wholly-owned subsidiary Meisheng Hong Kong subscribed for $5.275 per share for an additional 3.66 million shares issued by the Nasdaq-listed company JAKKS, for a total of $19.31 million. After the transaction was completed, Meisheng Hong Kong held a cumulative total of 19.50% of JAKKS's shares and became its largest shareholder; the investment was accounted for in accordance with the Equity Law and affected the company's investment income and other comprehensive income projects. Furthermore, the company announced that major foreign investment to build an IP ecosystem continues to advance, with an estimated transaction amount of 250-350 million yuan. The company resumed trading from the opening of the market on May 10. JAKKS Pacific is the world's leading toy company. JAKKS Pacific is a NASDAQ listed company in the US and the third-largest toy company in the US, dedicated to the design, production, promotion and distribution of toys and related products; product types include: 1) traditional toys and electronic products; 2) cosplay, innovative and seasonal toys. The company's revenue mainly comes from three sources: US and Canada business, international business, and Halloween business. The three business segments accounted for 68%, 18%, and 14% of revenue in 2016, respectively. The company's products are mainly sold through large supermarket chains, department stores, and large chain stores. The top three customers are Walmart, Target, and Toys R Us, accounting for a total of 48.42%. In 2016, JAKKS achieved revenue of US$707 million, EBITDA of US$43.84 million, and net profit of US$1.24 million. Lay out the core links of the industry externally, and the synergy effect is remarkable. This investment in JAKKS is not only expected to directly increase the company's performance, but is also an important layout for the company in the core link of the industrial chain - IP licensing, product development and design. In recent years, the company has basically completed the closed-loop construction of “own IP+content production+distribution operation+new media operation+derivatives development, design and production+online and offline channels”, and is committed to monetizing the entire domestic IP industry chain. As the world's leading toy licensor, JAKKS has many IP licenses such as Disney, Marvel series, Star Wars, Transformers, and Super Marie. Through deep binding, it helps Meisheng obtain licenses for world-renowned IPs, product development capabilities in mature developed markets, and its domestic supply chain resources. At the same time, JAKKS is also expected to help Meisheng go global: on the one hand, it will accelerate the expansion of its overseas channels, and on the other hand, it will help it integrate more high-quality overseas industrial chain resources. Profit forecasting and valuation. After the fixed increase is completed, the company has plenty of cash, and it can be seen that the company is accelerating the pace of layout: high-quality traffic (platforms such as True Fun Network, WeChat, Comic Man, Tentacle TV, Tianjin Kumi, etc.), high-quality IP acquisition (Dishun Technology, Uncle Peek, “Demon Tales,” Polar Bear Reading, JAKKS, etc.), and high-quality product development (Meisheng 2D, JAKKS, 1001 Night, etc.), and the high-quality channel and supply chain layout are helping Meisheng become the leader in domestic derivatives. We are optimistic about the company's development prospects for the long term. The company's strategic development goals are clear, execution is strong, and the synergistic effects of various businesses in the entire industry chain of accelerated layout will also gradually become apparent. The EPS for 17/18 is expected to be 0.80/0.97 yuan/share, respectively, giving 55XPE in '17, with a target price of 43.99 yuan, maintaining the “buy” rating. Major uncertainties: termination of brand image authorization; exchange rate risk, failure to fully and effectively integrate foreign investment project resources or performance falls short of expectations; poor connection between IP image and monetization channels, etc.