With the acquisition of Internet Port and the layout of IDC, the cloud computing company's purchase of 51% of the shares in Internet Port has completed the registration of industrial and commercial changes, with a transaction amount of about 397.8 million yuan. According to Internet Harbor's performance promise, the net profit for 2016-2018 was 40.5 million yuan, 69 million yuan, and 93 million yuan, respectively. The three main lines of the Internet port lay out cloud computing: 1) Accelerate the expansion of IDC computer rooms to lay the physical foundation for the development of cloud computing. Internet Port currently operates 10,000 cabinets in Beishangguang, including about 2,000 cabinets built on its own in 2015, accelerated expansion in 2016, reaching about 5,000 self-built cabinets at the end of 2016, and is expected to increase to 7,000 to 10,000 cabinets by 2017; 2) The country is pioneering the deployment of SDN network architectures to provide technical support for future cloud computing-driven traffic outbursts. As the scale of traditional IDC increases, problems such as inefficiency and waste of bandwidth resources will occur; SDN is the mainstream technology for solving such problems. The company was the first in China to implement an interconnected wide-area network that applied the SDN architecture to data centers in dozens of cities across the country. 3) Collaborate with industry-leading companies to deploy hybrid clouds ahead of schedule. Hybrid cloud is one of the mainstream trends in future cloud computing. The company cooperated with Gao Yun, a leading private cloud service product in China, to jointly launch an industry-leading hybrid cloud system, covering functions such as hybrid cloud management, automated operation and maintenance, monitoring and alerting, self-service IT, and continuous delivery. It can support multiple centers and heterogeneous network architectures in different locations, and achieve comprehensive management of business. The company acquired Internet Harbor and transformed the fields of IDC and cloud computing. The Internet port itself has technological and resource advantages in the field of cloud computing. Combining the company's capital and technical collaboration, the integrated layout of “IDC+SDN+ cloud computing”, differentiated competition will help the company stand out in the field of cloud computing in the future. The traditional main business has maintained steady development 1) The 4G network has accelerated development, driving the steady development of the traditional main business. Domestic 4G construction has moved from an emphasis on coverage to a stage of competition for speed and service. Network quality is becoming more important, which in turn is driving demand for the Internet premium market. 2) Increased market competition is expected to benefit from increased market concentration. Currently, the number of domestic third-party network optimization service providers is large, the scale is small, and the degree of homogenization is serious, so they are basically in a state of complete competition. As an industry leader, on the one hand, the company has expanded its main business to a complete industrial chain through mergers and acquisitions, and on the other hand, it has customer and resource advantages, and is expected to benefit from increased market concentration in the future. Moreover, if you compare several companies in the same industry in recent years, this trend does exist. 3) Actively explore overseas markets. The company began planning overseas market business in early 2015, and relied on cooperation with equipment vendors such as Huawei and ZTE to provide technical services overseas. By the end of 2015, the company's business covered 8 countries and achieved business revenue of 8.74 million yuan. In 2016, the company further stepped up efforts to expand overseas projects, and in the first half of the year, a Hong Kong company was set up specifically to connect with overseas network optimization and maintenance projects. Investment suggestions and ratings benefit from the rapid expansion of the 4G market, driving demand for network optimization, and the traditional main business is expected to remain stable. Acquire Internet Harbor, officially enter the fields of IDC and cloud computing, and lay out the “cloud+management” integrated business. At the same time, the company's M&A funds will continue to invest and acquire in fields such as IDC, SDN networks, cloud computing and big data, etc., to coordinate business and capital with listed companies. Considering the contribution of 51% equity in Internet Harbor to the company's profits, we forecast that the company's net profit for 16-18 will be 90 million yuan, 125 million yuan, and 137 million yuan. The company's market value is 4,542 million yuan, and the corresponding 2016-2018 PE is 50X, 36X, and 33X. We are optimistic about the development trend of the cloud computing industry, acknowledge the company's layout, and judge that the business and capital collaboration between the company and the Internet port will continue to deepen. Consider the company's market value and valuation level in a comprehensive manner, give a buying rating, and continue to focus on recommendations!