Key investment events: The company released its 2016 mid-year report. Comment: Benefiting from factors such as mergers, 2016H1's performance increased dramatically. 1) In the first half of the year, the company achieved operating income of 1.3 billion yuan, an increase of 247% over the previous year, and net profit of 113 million yuan, an increase of 971% over the previous year. 2) There are two main reasons for the sharp increase in performance: First, Weiwin Interactive and Cloud Time and Space are included in the scope of the consolidated report, and second, Jinyuan Interactive's business revenue has increased dramatically. 3) The company expects to achieve net profit of 130 to 160 million yuan from January to September 2016. 4) The company plans to transfer 10 shares to 10 shares for every 10 shares during the reporting period. The mobile marketing layout is improving day by day. 1) In terms of mobile media advertising and mobile search engine advertising, the current revenue for the current period was 723 million yuan and 375 million yuan respectively, and it became the country's leading agent for many mobile media such as Xiaomi, vivo, LeTV, and OPPO. 2) In terms of mobile Internet advertising package development and application distribution represented by Weiying Interactive and Cloud Time and Space, the company's revenue was 130 million yuan and 59 million yuan respectively. Its platforms cooperate with more than 600 SPs, 900 channels of various channels, promote more than 2,000 apps, promote more than 2,000 apps, have an average of 5.5 million daily active users, and a total of 25 million product activations. 3) In terms of internal integration and epitaxial expansion, the company divested the surge protection products business and announced in August that it intends to acquire KidZi Technology and online and offline. Profit forecast and rating: The company's 2016/17/18 exam preparation net profit was 2.94/3.61/403 million yuan, fully diluted EPS was 0.76/0.96/1.16 yuan, and the current stock price corresponding to PE was 51/42/37 times, respectively, and the diluted market value was 15 billion yuan. We are optimistic about the two-wheel drive of the company's external mergers and acquisitions and endogenous development, the synergy between various subsidiaries, and the company's determination to focus on digital marketing strategies. We expect the company to continue to improve its mobile marketing layout and maintain its “buy” rating through extension in the future. Risk warning: Acquisition falls short of expectations; downside macroeconomic risk.