智美体育(01661) 　　Surging Marathon events in FY16 　　Organized its first Marathon in 2012, Wisdom has built a strongreputation. In 1H16, The Company organized 4 self-operatedMarathons (in Kunming, Hainan, Dongguan and Jilin respectively) and1 co-operated Marathon. These events contributed ~RMB100mnrevenue to Wisdom mainly through commercial sponsorship. AsWisdom would organize 15 self-operated Marathons and a few moreco-operated Marathons in 2H16E, including the two most establishedevent in Guangzhou and Hangzhou, we expect Marathon eventswould already contribute >RMB500mn revenue in the Company inFY16E, versus RMB345mn revenue from the whole sports segment inFY15. After a jump in 2016 (from 5 self-operated Marathons in 2015 to19 in 2016), Wisdom target to organize 27-30 Marathons in 2017.? Operation of National Basketball League a new income source? Wisdom also made a progress in basketball project by obtaining thecommercial operation right of National Basketball League (“NBL”) inChina for 2016-2019. While NBL is less popular than ChineseBasketball Association (“CBA”), the matches of NBL take place duringsummer (May to Sep), which is the holiday of CBA. CCTV also startedhaving live-broadcast of the NBL matches in 2016. Wisdom is expectto generate ~RMB70mn revenue in FY16E, as NBL is going to addmore teams in 2017 (from 14 to 18), we believe sponsor incomewould further increase next year.? Target to have 100 stadiums by 2019? On the other hand, the Company has started to invest in >10 stadiumsin Beijing, Shanghai, Guangzhou, and Shenzhen, of which 5 of themwould commence operation in Dec 2016, with ~RMB4-5mn CAPEXfor each stadium. Most of these stadiums are badminton courts andswimming pools, and there would be one ice hockey court to promotewinter events as Beijing is going to host the 2022 Winter OlympicsGames. Each of these stadiums is expected to generate ~RMB5mnrevenue per annual mainly from hire charges. Wisdom target to have100 stadiums by 2019.? FY17E results; SZ-HK Connect? A pure sports play with positive earnings outlook, Trading BUY? After discontinued the traditional advertisement business in early2016, Wisdom has now transformed into a pure sports servicesprovider. We believe Wisdom is one of the very few choices forinvestors to capture the blooming sports industry in China. Moreover,while Wisdom’s share price is close to its historical trough, we viewthat earnings could further improve in FY17E after the expectedstrong rebound in FY16E. Trading BUY.