Incident: In December 2015, the company announced plans to increase the wholly-owned merger and acquisition of Jiechi Technology. The total share price of 100% of Jiechi Technology is 1.06 billion yuan, corresponding to the 16-year performance promise of 15.1 times the price-earnings ratio. The company issued 40.41 million shares at 21.21 yuan/share to pay 857 million yuan in share consideration; raised supporting capital to issue no more than 30 million shares, and raised no more than 582 million yuan to pay 203 million yuan in cash consideration, 100 million yuan to increase capital of Jiechi Technology, and 100 million yuan to supplement the working capital of listed companies. Baoxin Technology started with the CNC sheet metal business, acquired Youzhi Technology, Jiechi Technology, and Apani, and formed multiple platforms for energy saving and environmental protection. Youzhi Technology is a leader in matrix-type flow monitoring. The policy environment is driving the outbreak: 1) Tax reform on sewage charges, and accurate monitoring is like an arrow. The environmental tax is expected to be officially introduced in '16, and the levy standard may double again. Accurate measurement is directly related to the calculation accuracy of flue gas emissions, and the importance of flue gas flow monitoring is highlighted. 2) Matrix flowmeter pioneer: Youzhi Technology uses full-section multi-point array technology to break through the flue gas flow monitoring bottleneck. It was the first to obtain certification as an environmentally friendly product for flue gas flow meters, and the growth of the flue gas flow monitoring business took the lead. Jiechi Technology: A pioneer in online circulation of PCB waste liquid. 1) Huge market space: China produced 580 million square meters of PCBs in 2014. The total annual economic value of recycling is close to 127 billion yuan, of which copper recycling is worth 116 billion yuan. 2) First-mover advantage: It has been successfully applied to large PCB companies such as Foxconn, Formosa Plastics Group South Asia Electronics, Hanyu Bode, etc. 3) The first-mover advantage is obvious, and the innovative BOO model: Jiechi Technology bypasses intermediaries through the model of providing equipment and services free of charge. Wastewater discharge standards are met, and copper recovery and waste liquid reuse are realized at the same time, and environmental friendliness and economy are outstanding. Performance promises to reach 0.4/0.7/100.130 million yuan in 15-18 years. Arpani: Regenerative heating combines environmental protection and cost advantages to seize the 100 billion dollar market. Coal-fired emissions have officially been upgraded, and coal-fired heating boilers have faced the strongest stranglehold. The economy of high-pressure electrode boilers is clearly superior to gas and oil boilers, and can quickly fill the gap after the coal-fired boiler is shut down. Apani provides equipment, construction implementation and technical services for heating projects; CGN Energy is positioned as the investment, construction and operation manager of the project. Investment advice: Maintain an increase in holdings rating. Considering the merger and acquisition of Jiechi Technology, we predict that Baoxin Technology's net profit for 15-17 will reach 1.4/2.2/320 million yuan, and that the market value of additional sales and exam preparation will reach 5.1 billion yuan. The additional price of 21.21 yuan greatly exceeded the current price of resuming trading. In the future, the company's business will continue to focus on energy saving and environmental protection, and expand in fields such as environmental monitoring, clean heating, and photovoltaic power generation. The company is an absolute leader in the fields of PCB waste liquid circulation, matrix flow monitoring, low valley electric heat storage heating, etc., and its performance has entered a period of accelerated release, and it continues to be highly recommended! Risk Warning: Asset acquisitions are consolidating faster than expected