Incident: The company issued an announcement to purchase 100% of Xinhuikai's shares held by the counterparty using a combination of issuing shares and paying cash. The asset purchase price of the issued shares is 12.85 yuan/share. It also raised supporting capital for this restructuring through a non-public stock offering, with a total supporting financing of 532,319,894 yuan. Comment: In the flat panel display industry, Xinhuikai focuses on the R&D, production and sales of products related to the flat panel display industry chain, such as touch screens and small to medium LCD screens and modules. The touch display products it produces are mainly used in high-end brand vehicle displays, medical devices, industrial control and home consumer electronics. In particular, the vehicle display field corresponding to its products is an important carrier for smart cars and vehicle networks, and is expected to become an important entry point for vehicle networking and human-vehicle interaction. After years of development, the company has a certain position in the industry, and has now become a product supplier with many of the world's top 500 companies such as Flextronics and Honeywell for many years. XinhuiKai's outstanding performance has greatly improved the future performance of listed companies. As of 2015, XinhuiKai's total assets were 1,241 billion yuan, or 161.71% of the listed company's net assets, or 1,241 billion yuan, or 209.08% of the listed company's revenue of 787 million yuan, or 155.17% of the listed company. It can be said that the target of the acquisition was better than that of listed companies. In addition, Xinhuikai shareholders Furui Investment and Hengda Weiye are the performance compensators of XinhuiKai and promised that the net profit achieved by XinhuiKai in 2016, 2017 and 2018 will not be less than RMB 74.3745 million, RMB 11,3014,300, and RMB 136.551 million respectively, which is equivalent to 14.71 times, 22.36 times, and 27.01 times the company's net profit in 2015! The driving effect on the company's performance is outstanding. Profit forecasting and investment rating companies have always been engaged in the production of electromagnetic wire products. In recent years, the industrial chain has been extended to the field of electric reactors. In the future, with the end of the peak UHV construction period, demand for high-end products will also face some pressure, and conventional products will face intense competition and poor profitability. After the restructuring was completed, the main business of the listed company changed from a single high-end electromagnetic wire and power equipment manufacturing to a two-wheel drive development situation of high-end electromagnetic wire and power equipment manufacturing and touch display product manufacturing, forming a diversified business model. The touch display business segment is more profitable and has a strong impact on the performance of listed companies. Without considering the merger and acquisition targets on the company's performance, we expect the company's EPS in 2016-2018 to be 0.05, 0.07, 0.09 yuan/share. Considering the contribution of the merger and acquisition targets, the diluted EPS for 2016-2019 is expected to be: 0.28, 0.42, and 0.52 yuan/share, maintaining the recommended rating.