Incident: On August 11, the company issued an announcement stating that the company plans to invest 1,08.7 billion yuan to acquire 86.50% of Xiaozi Technology and 90% of Wuxi's online and offline shares through a combination of issuing shares and paying cash; at the same time, it will raise 40.205 million yuan in supporting capital from controlling shareholders Zhou Jianlin and Huaxia Life's non-public shares, with a proposed issue price of 31.74 yuan/share. Comment: With the acquisition of Xiaozi Technology and online and offline, the mobile marketing industry chain layout continues to strengthen: the company used 1,087 million yuan to acquire the remaining online and offline shares of Xiaozi Technology and Wuxi. The two companies each promised that the deducted non-net profit achieved in 2016-2018 will not be less than 50 million yuan, 65 million yuan, 85 million yuan and 35 million yuan, 46 million yuan, and 60 million yuan. Among them, Xiaozi Technology is deeply involved in the field of programmatic purchasing technology. The core backbone comes from Baidu, and online and offline mainly provides mobile information services. Previously, the company had participated in some shares in the two companies. After the acquisition was completed, it meant that Mingjia United continued to strengthen the programmatic purchasing and short message service industry chain layout in the field of mobile marketing. The steady model of “participate first, then receive” is gradually advancing, and endogen+extension strengthens the industrial chain. The introduction of supporting financing to Huaxia Life Insurance, which is the sixth largest shareholder of the company, is expected to strengthen cooperation: all of the additional shares of supporting financing were subscribed by Chairman Zhou Jianlin, the actual controller of the company, and Huaxia Life Insurance for 3 years, showing that the majority shareholders of the company are firmly optimistic about the company's subsequent development, while introducing strategic shareholder Huaxia Life Insurance. The latter is an insurance professional institutional investor. Previously, they also transferred 5 million shares of the company through major transactions. After the implementation of this plan, they will hold 2.33% of the shares in the listed company, becoming the sixth largest shareholder, indicating that they are optimistic about the company's pure mobile marketing as the sixth largest shareholder, indicating that they are optimistic about the company as the sixth largest shareholder The target is extended With the development and expansion of the industrial chain layout direction, the current issue price is 31.74 yuan, locked for 3 years. Compared with the current stock price of the company at 32.8 yuan, which still has a good margin of safety, the two sides are optimistic that in the future, the two sides are expected to deepen cooperation and bring about resource collaboration. Profit forecasting and valuation: We believe that the company is a target of pure scarcity, and that continued external performance growth is sustainable. The company's net profit for 16-18 is estimated to be: 3.16, 3.77, and 438 million yuan; the corresponding diluted EPS is 0.94, 1.12, and 1.30 yuan; the current stock price corresponds to 35, 29, and 25 times PE. Maintain a “Highly Recommended” rating. Risk warning: Risk of market shocks, extended mergers and acquisitions falling short of expectations, and falling short of expectations on gambling.