Key points of the report. A description of the event. Wanli Co., Ltd. announced a major asset restructuring plan. The company plans to purchase 100% of the shares in the Internet real estate advertising and marketing business and financial business of Search Fangtian through a non-public offering of shares, with an estimated asset value of 16.18 billion yuan. Furthermore, the company plans to raise no more than 3.160 billion yuan in supporting capital through a non-public offering of shares. The company will not resume trading for the time being because it has not yet obtained an audit opinion from the Shanghai Stock Exchange. Incident reviews. Spin-off listing, housing advertising, and financial business A-share backstage: The company plans to sell all of its assets and liabilities other than monetary capital to Southern Tongzheng, with an estimated value of not less than 700 million yuan. At the same time, the company plans to purchase 100% of the shares of Liman Wanjia, Soufang Media, and Beijing Soufang Network through a non-public offering of shares; 100% of Tuoshi Huanyu's shares held by Fangtianxia Network; and Hongan Tuo held by Fangtianxia Network to increase 100% of its shares, with an estimated value of 16.18 billion yuan of invested assets. If the transaction is completed, the total share capital of the company will be 968 million shares, of which Fangfang World and its co-actors, Fangtian Network and Fangfang Decoration will hold 678 million shares of the Company, with a shareholding ratio of 70.01%, and the controlling shareholder of the company. A leading real estate e-commerce company with significant competitive advantages: The main business of the proposed asset investment is the Internet real estate and home advertising marketing and financial business under Search Housing Holdings. Currently, the financial business has not yet reached scale, and revenue is mainly contributed by advertising and marketing. The assets to be invested rely on the rich operating resources and leading market penetration rate of Search Housing Holdings, and have significant influence in the Internet real estate advertising and marketing business. At the same time, there are various marketing methods to be inserted into asset advertising, including PC-side display advertising, mobile internet marketing, and offline event marketing. The different marketing methods are superimposed on each other to enhance the coverage and influence of advertisements. Furthermore, Real Estate Search Holdings does not have its own news media platform. Its advertising and marketing attract home buyers with more accuracy, a high home purchase transaction rate, and the accumulated big data resources are more effective, and it has strong market competitiveness. Raise supporting capital to accelerate company integration and business development: In order to guarantee more effective operation and rapid development of advertising, marketing and financial services after the assets to be put into the shell, the company now plans to raise no more than 3.160 billion yuan in supporting capital. After deducting issuance fees and related taxes, all of which are invested in internal management platforms and system upgrade projects, financial database and offline network construction projects, housing database construction projects, overseas market development projects, and technology research and development projects. Investment suggestion: If the transaction is successful, the company's share capital will be changed to 968 million yuan. Based on the 2016 performance promise of 800 million yuan, the EPS is 0.83 yuan, and the company's suspension price is 33.09 yuan, corresponding to PE39.87. Conservative estimates are higher than the PE predicted by comparable companies 365 Network and World Union Bank in 2016. However, considering that Wind's unanimous expectations are more optimistic and the company's successful listing effects and supporting capital have improved operating efficiency and performance growth brought about by supporting capital, we believe that the current valuation still has room to rise, covering it for the first time, giving it a “recommended” rating. Risk Warning: The risk of a company's backdoor restructuring plan not being approved as scheduled