Key investment points: First-time coverage gives an increase in holdings rating, with a target price of 9.71 yuan. ① Xi'an Food & Beverage acquired Jiahe Yipin to achieve a rich business structure and regional expansion: from a long-established restaurant business to a more standardized Chinese fast food with more room for growth, expansion from the northwest region to the North China region and the possibility of expansion in other regions; ② The merger and acquisition has brought more market-based competitive teams and rich restaurant O2O experience, which is expected to improve the operating efficiency of existing businesses. The 2015-2017 EPS is estimated to be 0.05/0.08/0.08 yuan, respectively, and after Jiahe Yipin, it is estimated to be 0.09/0.14/0.16 yuan. Since mergers and acquisitions have increased performance and driven improvements in operating efficiency, a certain valuation premium was given, with a target price of 9.71 yuan, taking into account the current low market value. Overview of the transaction plan: Issuing 82.2 million shares to the current shareholders of Jiahe Yipin at 5.0 yuan/share to buy 100% of the company's shares. The purchase price corresponding to the promised performance in 2015 is 13.7x, and the valuation is relatively low. It is promised that the annual net profit for 2015-19 will not be less than 3000, 4200, 5500, 6400, and 69 million yuan, and the five-year performance commitment and the compound growth rate is fast, reaching 23.1%. Jiahe Yipin: A diversified healthy diet and catering service provider in North China, with revenue of 310 million yuan and net profit of 1.08 million in 2014. Beijing, Tianjin, and Hebei have 66 direct-run stores and 35 franchise stores, and develop online and mobile ordering services. In 2014, the iFood517 Food and Beverage O2O service platform was jointly developed and launched, and the team has rich operating experience. Chinese fast food industry: A growing mass catering market with great potential for development. ① The retail sales volume of the Chinese restaurant market is estimated to be 4.46 trillion yuan (5-year CAGR 11.8%) and the fast food market is 1.17 trillion yuan (5-year CAGR 17.5%) in 2018, with Western and Asian specialty fast food shares being 20.1% and 79.9%, respectively. ② Popularity, internetization and industrial chain expansion are important development directions of the industry. Risk Warning: The risk that the overall downturn in the industry/M&A integration progress will not meet expectations