Main points of investment:

Maintain the "overweight" rating. The company's traditional main business is picking up, in line with expectations. In the first half of the year, it is proposed to acquire Taiyi Shang in the form of issuing shares to acquire assets and raising supporting funds. Without considering the factors of merger and equity issuance, we maintain the company's estimated EPS of 0.13 yuan in 2016-2017 and EPS of 0.21 yuan in 2018. With reference to the average valuation of big data's marketing industry and business transformation expectations, it will be 81 times PE in 2017, raising the target price to 15.4 yuan and maintaining the "overweight" rating.

Traditional business picked up, with a significant boost in first-half results. The operating income of 2016H1 Company was 414 million yuan, up 4.77 pct from the same period last year, while the net profit belonging to shareholders of listed companies was 5.65 million yuan, up 2188.49pct from the same period last year. The recovery of traditional business is mainly due to the fact that Minhe Steel Tube, a subsidiary, lost 7.6489 million yuan in the same period last year, while 2016H1 made a profit of 10.6788 million yuan; Shangfeng cement, a shareholding company, lost 8.25 million yuan in the same period last year, while 2016H1 made a profit of 3.4111 million yuan. Textile printing and dyeing business remained stable. It is expected that the company's traditional business will benefit from the Hangzhou G20 Summit, stricter environmental policies and supply-side reforms, and maintain steady growth in the future.

It is proposed to acquire big data marketing company Taiyi Shang, and the development of two-wheel drive is expected. In the first half of the year, the company plans to acquire Taiyi Shang by issuing shares to acquire assets and raising supporting funds. The purchase price is 1.2 billion yuan. The performance commitments for the period 2016-2018 are 55 million yuan, 85 million yuan (or a total net profit of not less than 140 million yuan in 2016 and 2017) and 122 million yuan (or a total net profit of not less than 262 million yuan in three years). Big data marketing industry competition pattern is not mature, it is expected that the future Thai finger is expected to rely on the platform of listed companies to achieve rapid development.

Risk hint: failure of major asset restructuring