Investment Highlights: Company Announcement/News: Henderson Daxin announced the acquisition of 70% of Jintengxing's shares. Transaction Overview: The company plans to invest RMB 26.5 million or other means to acquire 70% of Jin Tengxing's shares. (1) Financial situation: The total assets of Jin Tengxing, the target of the acquisition, at the end of 2013 were RMB 16.354,500, total liabilities were RMB 35,000, and net assets were RMB 163.195 million. It did not generate main business revenue. Net profit in 2013 was -2.7914 million yuan. (2) Projects and assets: Jin Tengxing obtained an investment project registration certificate issued by the Hubei Development and Reform Commission in October 2013 and plans to invest 150 million yuan to build warehouses and related facilities on 170 acres of land. Currently, the project needs to be approved by the Ministry of Land and Resources. It is currently in the process of applying for a land title certificate, and construction has not yet started. (3) Performance commitment: The construction project promises to be put into trial operation within 12 months after obtaining the relevant qualifications, and the equity transferor promises that the average return on investment within three years after the warehousing project is officially put into operation is not less than 10%. The expansion of acquisition projects helps the company expand its operating outlets, and if performance promises are fulfilled, it is beneficial to increase the company's ROE. (1) By acquiring 70% of Jintengxing's shares, the company actually controls Jintengxing and has expanded the company's market and business outlets in the central China regional center and the middle reaches of the Yangtze River. At the same time, through further expansion of the project company's main project, storage services for solid chemicals and other types of petrochemicals have been added. (2) The performance promise mentioned in the acquisition agreement is an average return on investment of 10% within three years of operation. If it does not meet the standards, all investments will be returned and the difference in return on investment calculated at 10%; this return is significantly higher than the company's current ROIC (we estimate 5.8%) and ROE (we estimate 5.7%). Achieving performance standards will significantly improve the company's profitability. Maintain the 2014-2016 profit forecast and “gain” rating. As the acquisition is yet to be approved by the board of directors, we are not making any adjustments to our profit forecast. We expect profit forecasts for 2014-2016 to be 54 million yuan, 65 million yuan, and 67 million yuan, corresponding to fully diluted EPS of 0.45 yuan, 0.54 yuan, and 0.56 yuan (the impact of stock transfers has not yet been taken into account). The PE corresponding to the latest stock price is 41.8X, 34.9X, and 33.6X, respectively. While further expanding the company's business and outlets, this acquisition will significantly raise the company's ROE level. We maintain our “gain” investment rating for the company and recommend investors to take an active approach.