Key investment points: Net profit from revenue to mother increased 80% + year over year. Nine major marketing companies were combined, and the strategic layout of the “digital marketing+digital outdoor+digital equipment” digital communication group is beginning to show. In 2016, the company had revenue of 2.803 billion yuan (84% +); net profit attributable to mother was 403 million yuan (80.16% +); net profit after deduction of non-return to mother was 381 million yuan. The original LED business had revenue of 935 million yuan (+19%), gross profit margin of 35.91% (an increase of 1 percentage point), falling to 33% of total revenue and net profit of 130 million yuan (+80%). Digital outdoor revenue of 688 million yuan (+51%), gross profit margin of 47.17% (increase of 6 percentage points), net profit of 190 million yuan (+62%); digital marketing revenue of 1,180 million yuan (+294%), gross profit margin 29.83% (decrease of 13 percentage points), net profit of 150 million yuan (+199%). The estimated net profit for Q1 2017 is 69.00-80 million yuan, +21.4% to +40.7% year-on-year. A total of nearly 1.36 billion digital outdoor marketing companies were acquired and listed in 2016 to enhance the integration of outdoor advertising media resources across the country. Since May '14, the company has taken 100% of Fengde Boxin's shares (transaction price of 102 million), 100% of the shares of Shanxi Huahan (transaction price of 364 million yuan), 100% shares of Ocean Media (transaction price of 300 million yuan), 100% of Xi'an Luyi's shares (transaction price of 263 million), 100% of Shanghai Chengguang's shares (transaction price of 200 million yuan), and 100% of Tibet's shares (transaction price of 130 million yuan). Actively expanding the outdoor advertising market in Chengdu, Nanjing, Taiyuan, Shanghai and Xi'an. Currently, it covers 342 cities across the country and has 55,156 advertising resources. It also stated that with the exception of Shanxi Huahan (completion rate of 98%) and Ocean Media (completion rate of 91%), the company has fulfilled its performance promises. In 2016, it acquired and listed 3 digital marketing companies and invested 13% of Shibong Network's shares to improve the digital marketing industry chain. Since March '15, the company has also been involved in the field of brand PR. In '16, the company accelerated the digital marketing business layout on the basis of the original high-margin PR business, which lowered the overall gross margin of the digital marketing business segment in '16. Internet marketing companies were acquired and listed during the reporting period: completed the acquisition of 100% shares of Accurate Audience and Lima Network; Interactive Event Marketing: 100% of Li Tang Marketing's shares. It also shows that all companies have fulfilled their performance promises. Accelerate the development of small-pitch LEDs, increase capital and acquire 60% of Artixium's shares to enter the field of virtual stadium displays. At present, PH1.2mm products have been industrialized, and PH0.8mm products have been successfully developed; in 2016, the number of R&D personnel expanded from 158 to 490, with R&D investment of 73 million, an increase of 59% over the previous year. In 2016, the company acquired 60% of Artixium's shares for 12 million US dollars and entered the field of virtual stadium displays, paving the way for the expansion and international layout of the cultural and sports industry. Profit forecast: The company's LED business has found new growth points, and the three major sectors are developing collaboratively. In 2017, the company plans to repurchase no more than 240 million yuan of shares for employee incentives (no more than 25 yuan/share) and issue 2 billion corporate bonds, with sufficient cash flow to support the development of the main business and extension expectations. The estimated net profit for 17 and 18 was 602 million yuan and 710 million yuan, respectively, and the corresponding EPS was 0.98 yuan and 1.16 yuan. We gave the company PE 30 times the 17-year industry average, and the corresponding target price was 29.4 yuan, and gave it a purchase rating. Risk warning. The acquisition company's performance fell short of expectations, and the market is a systemic risk.