Guide to this report: 2016H1's performance fell slightly below expectations, the company's revenue declined slightly, and the credit business performance was impressive. The acquisition of Tianyi Video, Colorful Interactive, Tianyi Reading, and iAnimation is expected to drive the company's transformation and build a pan-entertainment ecosystem. Investment points: The performance was slightly lower than expected, maintaining an increase in holdings rating. ① The growth rate of H1 receivables in 2016 was weak, and the overall performance of major airlines declined due to lower basic commission rates; ② The acquisition targets of Tianyi Video, Colorful Interactive, Tianyi Reading, and Loving Animation are expected to increase the company's performance and be optimistic about the company's performance after that. ③ The 2016/17 EPS was maintained at 0.15/0.20 yuan. Considering that future business collaboration between different sectors is expected to further release performance, the target price was raised to 26.7 yuan to increase holdings. Performance summary: In 2016H1, the company's revenue was 1,240 million yuan/ -19.79%, net profit of the mother was 135.3334 million yuan/ -68.22%, net profit after deducting non-return net profit of -3.9073 million yuan, loss increased, and EPS 0.03 yuan. Overall performance declined as a result of airline commission cuts. ① The company's H1 revenue fell 20% in 2016, mainly due to a decrease in the revenue scale of the product sales business: hotel business revenue was stable, reaching 266 million yuan/ -1.66%, e-commerce business revenue was 192 million yuan/ -30.49%. The company accelerated the construction of a universal credit platform in the first half of the year, and officially promoted the credit business. The receivables growth rate was impressive, reaching +381.36%. ② The company achieved net profit of 135.34 million yuan/ -68.22%, mainly due to a sharp reduction in the basic commissions of major airlines, which led to a decrease in the gross profit of the business travel ticket booking business. ③ The cost ratio for the period increased by 2.81 pct to 12.53%, further reducing the net profit margin space, mainly due to a sharp increase in labor costs, and the management expense ratio increased by 2.79 pct. Group asset injection helps the company accelerate transformation, and building a pan-entertainment ecosystem can be expected. ① In the future, the company will actively develop projects, focus on building the leisure resort boutique hotel brand “Maoju”, and accelerate the transformation to the Internet and social catering. ② Tianyi Video, Colorful Interactive, Tianyi Reading, and Love Animation, which are the targets of the proposed acquisition, have leading positions in the Internet video industry, game segment industry, mobile reading industry, and animation industry, respectively, and have outstanding profitability, which is expected to increase the company's performance. ③ Injecting the target company's pan-entertainment business will help achieve synergy between various business sectors, achieve corporate transformation and upgrading, and build a pan-entertainment ecosystem. Risk warning: Multi-business synergies may fall short of expectations, regulatory approval risks.