Incident: The company recently issued a series of announcements: 1) The Securities Regulatory Commission approved the company's issuance of shares to acquire assets and raise supporting capital; 2) The 2015 performance report showed that operating income and net profit to mother increased by 15.85% and 367.51% respectively; our view: The 2015 annual report results stemmed from Shanghai Xinhe and some traditional business sales. In 2015, the company achieved operating income of 965 million yuan (YoY 15.85%) and net profit of 298.284 million yuan (YoY 367.51%). The increase in revenue slowed down due to the sale of subsidiaries Lianchuang Technology and Shandong Zhuoxing, and through the merger of Shanghai Xinhe during the reporting period, the company's net profit increased significantly. Among them, Shanghai Xinhe contributed 52.2898 million yuan to net profit in the second half of 2015 (that is, the net profit consolidated into the profit statement of listed companies), while Lianchuang Chemical's loss of 16.0218 million yuan in 2015 had a major negative impact on the overall annual results. Currently, the company has signed an equity transfer intention agreement with natural person Shao Xiuying to transfer 75% of Lianchuang Chemical's shares held by listed companies. The company gradually abandoned traditional business burdens and went to battle lightly. The issuance of shares to acquire assets and raise supporting capital was approved by the regulations, and a new stage of company development was carried out. The company's announcement has received approval from the Securities Regulatory Commission, and this round of mergers and acquisitions is about to be implemented. This round of mergers and acquisitions and fund-raising enabled the company to purchase two high-quality assets, Shanghai JiChuang and Shanghai Lindong, into the corporate system, and jointly promoted the company's deep transformation to digital marketing with Shanghai Xinhe. At the same time, it is proposed to raise no more than 1,229 billion yuan to supplement the company's working capital and relieve debt pressure, providing momentum for the company's subsequent development. Both the Shanghai New Cooperation and the proposed mergers and acquisitions exceeded their performance promises. In 2015, Shanghai Xinhe, Shanghai Jichuang, and Shanghai Lindong achieved net profit of 128.1644 million yuan, 759.413 million yuan, and 43.9922 million yuan respectively, and the corresponding gambling performance was 10 million yuan, 70 million yuan, and 34 million yuan, exceeding the promised profit. It is expected that the 2016 results will continue to exceed completion. Profit forecasting and ratings. We estimate that the company will raise supporting capital through targeted issuance at an issue price of about 60 yuan/share (estimated value). The number of shares issued is estimated to be about 20.48,700 shares. In addition to the number of shares issued by targeted asset shareholders to purchase assets, we expect the total share capital after issuance to be about 37.1541 million shares. We expect that after the completion of this acquisition, the company's net profit for the 2015-2016 exam will be 2983/26750/321.88 million yuan, corresponding to the above estimated EPS of 0.23/1.64/1.98 yuan, respectively, and 347/48/40 times the corresponding share price PE on March 28, respectively. Since the issuance of shares to acquire assets and raise supporting capital has not yet been completed, the net profit for 2015-2018 is expected to be 2983/13400/177 million yuan, respectively, corresponding to the current share capital EPS of 0.23/1.07/1.41 yuan, respectively, and the PE corresponding to March 28 is 343/74/56 times, respectively. The performance of the company's proposed mergers and acquisitions continued to exceed expectations, and extensions continued to open up new possibilities, and after all mergers and acquisitions were completed, the 2016 exam preparation valuation was relatively low, maintaining the company's “buy” rating. Risk warning. Risk of unworkable business models; risk of failed share acquisitions; risk of industry development falling short of expectations; macroeconomic risk; national policy risk;