Incident: Huasheng Tiancheng announced: Automated Systems Holdings Limited, its indirect holding subsidiary, plans to acquire 100% of the shares of Grid Dynamics International, Inc., in the US. The transaction will be carried out by absorption and merger, with a total transaction consideration of approximately US$118 million. Key investment points: GD's technology is competitive, channel improvement, rapid performance growth, and long-term development: GD has rich experience and management capabilities in open source technology, cloud applications, real-time big data analysis, etc., and its main business is to provide enterprise customers in the retail, financial, media and technology industries with IT services such as omni-channel electronic platform core system development, cloud delivery, and real-time analysis of big data based on open source technology. GD has a complete sales network in the North American market, and has also established professional R&D delivery teams in the three Eastern European countries to achieve operations in the US and Eastern Europe. Its strong technical strength and perfect channels strongly guarantee the gathering of high-quality customer resources. The company's revenue in 2015 was 8.81 million US dollars, a growth rate of 241%, and net profit of 5.98 million US dollars, a growth rate of 309%. We are optimistic about GD's long-term development. The acquisition can achieve multi-party business collaboration: First, the company's subsidiary ASL's main business is to provide one-stop information technology services including system integration, maintenance services, and management services to China, New Matai and other regions. ASL and GD have good synergy in terms of sales channels and customers. Second, the company itself is committed to becoming an “industry big data and service provider based on high-end computing systems”. This acquisition will help the company to integrate advanced information technology and management experience around the world, starting with North America and Eastern Europe, and lay a good foundation for the company's long-term development. Profit forecast and investment rating: Maintaining the shareholding increase rating We are optimistic that the subsidiary's acquisition of GD will have a beneficial impact on the company. Since the acquisition has not yet been completed, we will not consider the impact of this acquisition on the company based on prudential principles. We predict that the company's EPS in 2016-2018 will be 0.08, 0.12, and 0.17 yuan, respectively. The price-earnings ratio valuation corresponding to the current stock price is 136, 93, and 67 times, respectively. Maintain an increase in holdings rating. Risk warning: (1) the risk that the acquisition will not be successfully completed; (2) the systemic risk of the market; (3) the risk of increased market competition; (4) the risk that related projects will not progress as expected.