Incident: Dianguang Technology announced on the evening of September 19 that the company plans to acquire 51% of the shares of Shanghai Jiapeng Culture Communication Co., Ltd., at a consideration price of 45.5 million yuan (cash acquisition). Jiapeng Culture currently has four directly-managed kindergartens in Shanghai. Through this acquisition, the company will leverage the entrance to early childhood education and develop an ecological layout in the preschool education industry. Main comment: Acquire Jiapeng Culture and lay out the field of preschool education. The company plans to purchase 51% of the shares of Shanghai Jiapeng Culture Communication Co., Ltd., controlled by Hu Yanjiong, Zhang Ying, and Cao Yiqian, at a purchase price of 4.05 million yuan (cash acquisition); Yueqing Fengyu Steady Education Industry Equity Investment Fund Partnership (Company Education Industry Fund) plans to purchase 15% of the shares at a purchase price of 13.25 million yuan. Jiapeng Culture currently has four directly-managed kindergartens in Shanghai. The company aims to enter the field of preschool education through this acquisition and is optimistic about the future development prospects of preschool education. The kindergarten is a franchise school of the “Fort of Kitty” brand, and its characteristic is bilingual teaching. According to public information, four kindergartens under Jiapeng Culture include the private Daning Xuejia Kindergarten in Zhabei District of Shanghai and Yongsheng Bilingual Kindergarten in Jidhibao, Shanghai. Basically, they are all affiliated with the “Lucky Fort” preschool education brand. Jidhibao Education Group is a large **** preschool education institution in China. Cross-strait operations cover 25 provinces and 47 key cities. The total number of schools on both sides of the Strait has reached more than 700 schools, and has a leading American language teaching system for children. Deducting non-net profit from gambling in '17 had a limited impact on the company's performance. Jiapeng Culture had revenue of 6.13 million yuan and net profit of 4.48 million yuan from January to August 2016. The company promised to deduct non-attributable net profit of not less than 9 million, 10 million, and 11 million in 17-19. Referring to Electric Technology's net profit of 54.17 million in 2015, 2017 will have an 8% increase in the company's net profit, and the increase will be limited. The purpose of this acquisition is to seize the entrance to preschool education and improve the layout of the education industry chain. Electric Technology has been involved in the field of education since 2015, and has successively completed the acquisition of 65% of Yali Technology's shares. Its education industry fund has successively invested in 28% of Newban Culture's shares and 8% of Newfield's shares. With this acquisition of Jiapeng Culture, the company will leverage the entrance to preschool education and carry out an ecological layout in the early childhood education industry. In the future, the company will form the layout of the entire education industry chain, from preschool education to international high schools and study abroad, and is optimistic about the company's future education development layout. Profit forecast: We expect the company's EPS for 2016, 2017, and 2018 to be 0.12 yuan, 0.18 yuan, and 0.19 yuan, respectively, and the corresponding PE is 161X, 108X, and 99X, respectively. Risk warning (1) The sharp decline in traditional business (2) the securitization of private education assets falls short of expectations (3) industry development falls short of expectations (4) policy regulation risks (5) systemic risks