Main viewpoints

1. Taking advantage of the prosperity of preschool education, Jiaotong Culture to create quality early Childhood Education Service Group Jiayu Culture aims to cultivate the all-round development of 2Mel 6-year-old children under the background of international education, and has four directly operated kindergartens in Shanghai. High-quality education core resources, excellent teaching system and rich management talents are the core competitive advantages of the company. Specifically, the company's kindergarten education is mainly divided into three levels: ○ 1 aims at 0Mel 3-year-old infants' early education, the company employs professionals at home and abroad to design personalized teaching aids, introduces foreign advanced 5Q education concepts and complete curriculum content. ○ 23 Mel 6-year-old kindergarten education, the company provides children with humane multiple intelligence development courses and international advanced bilingual courses, using a spiraling teaching framework to improve children's personality traits. ○ 33 Mel 12-year-old characteristic courses, the company continues to improve its service strength through the development of education market operation and development, professional consulting services and so on. With the gradual release of the policy of early childhood education, the prosperity of the early childhood education industry will continue to rise. The good reputation and rich operational experience of early childhood education will take advantage of the wind of early childhood education to help Jiawei culture build a professional preschool education group.

two。 Under the tone of tamping the development of the main industry and two-wheel drive, EO Technology has actively transformed the education industry since it confirmed that it will take the education industry as the company's second main business at the end of 2015. Its education industry fund has also conducted due diligence on a number of education companies and invested in Shanghai Newban Culture Development Co., Ltd., and Newfield Education Group. The acquisition of Jiafan Culture is a good beginning of the company's positive layout of preschool education and preschool education. The acquisition of Jiayu culture pried open the entrance to early childhood education, relying on the mature and well-run kindergartens of Jiayu culture, to consolidate the foundation of the electro-optical education industry. At the same time, it also helps to open up the education industry chain and realize the full coverage of the whole education industry chain from preschool education to international high school and studying abroad.

3. Investment advice:

Under the pressure of the main business, electric optical technology actively seeks to develop the second main business, and the original intention of realizing the education industry to improve the company's business performance has not changed. For the acquisition of Jiawei Culture, the company will have the entrance to early childhood education, and the direction of ecological layout in the early childhood education industry will be more clear. International education and preschool education will become the core sector of the company's education industry, and will continue to carry out integrated mergers and acquisitions around these two areas in the future. We estimate that the company's EPS for 16-17 years will be 0.21 EPS 0.27 yuan, corresponding to 108 / 83 times PE, respectively.

4. Risk tips: main business performance decline risk, education industry M & An integration risk, policy supervision risk.