Introduction to this report:

The company has formed marketing and PR services as the core, mobile terminals and new media as channels to provide a full range of integrated marketing services in all aspects of the digital marketing industry chain, fully benefiting from the rapid growth dividends of the digital marketing industry.

Key points of investment:

First coverage, target price is 23.38 yuan. The company integrated the respective advantages of Shanghai Lindong, Shanghai Xinhe, and Stimulate Advertising and Investment Networks to achieve the integration of content and channels, online and offline, and created a digital marketing matrix with leading comprehensive digital integrated marketing capabilities. The EPS is expected to be 0.51/0.61/0.67 yuan from 2017 to 2019, with a target price of 23.38 yuan, giving an increase in holdings rating for the first time.

With the general trend of integrated marketing, digital marketing is leading a new direction. As the communication pattern changes brought about by new media, the trend of communication and marketing integration is becoming more and more obvious. The boundary between PR, traditional advertising and digital marketing has disappeared, and the concept of one-stop integrated marketing has become a trend. At the same time, advances in digital technology have brought about continuous advances in means of communication and marketing models. Accuracy and high conversion rates have brought digital marketing into a new direction for advertisers' budgets. As advertisers' brand awareness and digital technology improve, it is expected that the PR and marketing industry will continue to grow rapidly in the future.

Gather high-quality resources to build a full range of integrated digital marketing capabilities. The company integrates different means of communication and communication professional platforms to meet the diverse needs of customers with comprehensive marketing solutions, provides one-stop digital marketing communication services for various business segments such as creative and strategy formulation, media purchasing, digital PR, social marketing, innovative application of e-commerce, data analysis and recycling, etc., constructs a communication matrix based on mobile terminals and new media, and makes every effort to create a service model characterized by “digital+content” integrated marketing and the competitiveness of a highly differentiated marketing system within the industry.

Acquire the investment network and continue to improve the marketing matrix layout. The company announced 600 million yuan to hold China's leading self-media operator Investment Network to achieve a business breakthrough in the field of self-media marketing and achieve collaboration with the company's existing marketing sector in terms of connecting customer resources and expanding media channels. Thus, it is expected that the company will further improve the company's integrated marketing matrix and fully enjoy the industry's growth dividends.