Key investment events: The company announced on the evening of December 4 that the transaction to acquire Ingram Micro has passed and completed all domestic and international approvals, filing procedures and other preliminary procedures. The parties to the transaction have begun the delivery process. The expected completion time of the delivery is around December 5, 2016 (New York time). Comment: After 10 months, the acquisition is about to be successful. The company began suspending trading on February 6, 2016; a major asset purchase and related transaction report was announced on July 5, and plans to acquire 100% of Ingram Micro's shares by cash payment for about US$6.09 billion; it was announced on December 4 that delivery work has begun, and the delivery is expected to be completed in about 1 day. The entire acquisition has taken 10 months and is about to be successful. After the acquisition is completed, Ingram Micro will delist from the New York Stock Exchange and become a holding subsidiary of Tianhai Investment (Tianhai Investment holds 68.5% of the shares; the other shareholder is Guohua Life). It is expected that after the acquisition is completed, HNA Group will use its domestic resources and management experience to help Ingram Micro develop new growth points. Taking into account the situation of Ingram Micro and HNA, we think the future may have the following highlights: 1. Ingram Micro entered the Chinese market in 1997, but the main markets are concentrated in Europe and America, and the localization experience is relatively lacking. Ingram Micro can use HNA Group's domestic resources and experience to expand the Chinese market; at the same time, Ingram Micro's rich overseas operation experience, huge dealer resources, and mature global supply chain system can help Chinese IT companies “go global” and achieve a win-win situation. 2. Ingram Micro is the main cloud service provider, integrating nearly 5,000 cloud service functions from about 2,000 vendors to promote the cloud service market to 17 countries around the world, covering most service fields. Due to security concerns, Ingram Micro's cloud services have yet to enter the Chinese market. In the future, Tianhai Investment may bring Yingmai's advanced cloud services to the Chinese market. 3. Ingram Micro is the world's leading IT supply chain management company, but in the past, it did not focus on developing supply chain finance business. Small and medium-sized enterprises in China often face financing difficulties. The supply chain finance business has good prospects and huge space for domestic development. HNA Group has a full financial license, which can help Yingmai develop supply chain finance business domestically. According to the acquisition plan, Tianhai invested 6 billion US dollars to acquire Ingram Micro, of which $231 million was compensation for part of the equity incentive plan. Equity incentives for Ingram Micro's management will help Ingram Micro's original business achieve better growth. Valuation and ratings. Assuming that Ingram Micro achieved net profit of 360 to 450 million US dollars in 17-18, at an exchange rate of 6.8, taking into account the financial expenses of the acquisition and minority shareholders' rights, corresponding to Tianhai's investment of 1.13 billion yuan and 1.55 billion yuan in 17/18. In addition, it is estimated that Tianhai Investment's Sino Joint Guarantee Shares can contribute 120 million yuan to net profit every year. Tianhai invests an EPS of 0.43 or 0.58 yuan in 17-18, corresponding to a PE of 23.7 or 17.6 times in 17-18, maintaining the “gain” rating. The company's valuation is cheap and the future prospects are broad. Investors will continue to recommend a strategic layout. Risk warning. IT demand fell sharply, and business development in China fell short of expectations