Incident: The company announced a major asset restructuring plan and resumed trading: it plans to acquire 100% of the three shares with 1.104 billion yuan, of which 356 million yuan will be paid in cash by raising supporting capital and 748 million yuan by issuing shares. According to the three-person industry's performance commitment, the purchase price corresponding to its 16-year PE was 13.75 times that. Key investment points: Transform into the field of campus media marketing to open up new growth space. Founded in 2003, Sanmeng is an online and offline all-media advertising agency, which specializes in campus all-media business and campus PR and marketing activities. At present, it has established long-term cooperative relationships with nearly 900 well-known colleges and universities across the country, and has various forms of national campus media network resources, including reading boards, playground fences, outdoor media at school tables, freshman guides, college BBS, campus outdoor media, print media, and internet media. The trio was listed on the New Third Board in 2015 and is also known as the “First Stock of Campus Media” on the New Third Board. It has a huge library of its own media resources and rich customer resources. In 2014, the overall Internet advertising market in China was 154 billion yuan, an increase of 40% over the same period, far exceeding the 2% growth rate of the national advertising market during the same period. The advertising and digital marketing industry is in a period of rapid growth thanks to the Internet trend. At the same time, it is relatively easy to integrate with the tourism industry. The company is expected to achieve new growth points and development space through this acquisition. High performance promises (and compensation plans) combined with a high percentage of major shareholders' subscriptions reflect confidence in development. According to the terms of the transaction between the two parties, the three parties promised that their net profit after deduction from 2016 to 2018 would not be less than 800 million yuan, 100 million yuan, and 125 million yuan respectively. The net profit of Sanxing in 2015 was 24.48 million yuan, an increase of 94.44% over the previous year. If it follows this promise, the year-on-year growth rates of net profit from 2016 to 2018 reached 227%, 25%, and 25%, respectively. At the same time, the transaction proposed a compensation plan for performance promises. If the actual net profit for that year falls below 90% of the promised net profit, then a relative compensation plan is initiated. Mr. Qian Jundong, the general manager of the trio, promised to continue to serve as the general manager of the trio for no less than 8 years after the transaction was completed. The ban on the shares acquired by the major stocks Dong'an Duoduo Investment, Qian Jundong, and Cui Lei was lifted over 7 years. In addition, the major East-West Travel Group plans to subscribe for 450 million yuan in supporting capital, accounting for 77.59% of the total capital raised by 580 million yuan, and the lockdown period is three years. Whether it is the high performance commitment, the long service period and stock lock-up period for the other party's core personnel, or the high subscription ratio of the majority shareholders, it shows that the management of the two sides has a high level of confidence in this cooperation. Old trees are new flowers, and future development is worth looking forward to. The main business of the company is traditional travel agencies and hotel management, and there is little historical capital operation. Business conditions have been poor in recent years due to increased competition in the industry and the tightening of consumption in the three public sectors. The annual report for the past two years has always put forward demands for capital operation and asset expansion and strengthening, and is actively seeking transformation. With this acquisition of the trio, the company successfully entered the advertising and digital marketing industry. In addition to increasing performance, the combination of the two is also expected to have a synergistic effect, seeking new growth space for the company's long-term development. Profit forecast: Profit forecasts of $0.06 and $0.07 from 2016 to 2017 are maintained for the time being. If acquisition and equity dilution are considered, the corresponding EPS for 2016 to 2018 is $0.26, $0.32, and $0.4, respectively, and the corresponding PE is 49, 40, and 32 times. Maintain the “Overweight” rating. Risk Alerts: 1) An emergency or major outbreak; 2) The acquisition schedule falls short of expectations or cannot be completed