Investment Highlights Asia Pacific International: A leading brand in high-end hotel decoration. Established in 2012, Yatai International achieved operating income of 1,806 billion yuan and net profit of 110 million yuan in 2015. The controlling shareholder of the company is Shenzhen Yatai One Trillion Investment Co., Ltd., with a shareholding ratio of 62.99%. The actual controllers are Qiu Ai and Zheng Zhong, who together held 90.54% of the company's shares before issuance. The industry space is vast, and the market concentration is low. The total output value of the public building decoration market in 2015 was 1.74 trillion yuan, an increase of 92 billion yuan over 2014, an increase of 5.6%, and the average compound annual growth rate for 2011-2015 was 9.22%. As the backbone of the industry, the average output value of the top 100 enterprises in the industry in 2013 was 1,716 billion yuan, and CR100 was only 5.94%, a slight decrease from 2012. No company accounted for more than 0.7%. The industry as a whole is very scattered, showing the typical “big industry, small company” characteristics. Mainly high-end hotel decoration, outstanding design strength. The company's international design brands rank in the top five in the world's top 100 hotel design rankings; the company's construction business revenue accounts for 87%, of which hotel business revenue accounts for 60%; and South China accounts for nearly 40% of revenue. The company has rich service experience in high-end star hotel design and engineering construction, and has brought together many world-famous designers. The per capita output value of the company's designers is significantly higher than that of comparable listed companies in the same industry. The future development of the company. The company will further consolidate the characteristic hotel decoration business, vigorously promote integrated decoration, and further increase market share in the field of public building decoration; implement business expansion and upgrading through mergers and acquisitions, etc., and actively advance into the international decoration design market. Profit forecast and valuation: The company's net profit for 2016-2018 is estimated to be 126 million yuan, 155 million yuan and 179 million yuan respectively, and fully diluted EPS is 0.70 yuan, 0.86 yuan and 0.99 yuan respectively. Referring to the valuation levels of comparable listed companies, combined with the company's future development space, 45-55 times PE was given in 2016, and the corresponding price range was 31.5 to 38.5 yuan. Risk warning: accounts receivable recovery risk, new orders falling short of expectations