Key investment events: The company purchased 86.50% of the shares of Xiaozi Technology and 90% of the shares online and offline in Wuxi (previously held 10% of the shares); at the same time, it plans to issue 12.61 million shares to raise 400 million yuan in supporting capital. Comment: Acquiring 86.5% of Xiaozi Technology's shares and increasing the programmatic advertising layout. 1) It is proposed to issue 12.4 million shares and pay 212 million yuan in cash to acquire 86.5% of Xiaozi Technology's shares, with a transaction consideration of 610,000 yuan. It promises that the 2016/17/18 net profit will not be less than 5,000/6500/85 million yuan, corresponding to PE12/9/8 times; 2) Xiaozi Technology's online affiliate resources and programmatic business will form a strong synergy with Jinyuan Interaction, Weiying Interaction, and Cloud Time and Space to jointly deepen the digital marketing strategies of listed companies. Acquire 90% of online and offline shares in Wuxi to open up new channels for digital marketing. 1) It is proposed to issue 7.62 million shares and pay 161 million yuan in cash to acquire 90% of Wuxi's online and offline shares, with a transaction consideration of 400 million yuan. The net profit for 2016/17/18 will not be less than 3,500/4600/60 million yuan, corresponding to the purchase price of PE11/9/7; 2) Wuxi has a license to operate mobile value-added services across provinces, and its SMS business can open up new channels for the company's digital marketing business, and the SMS/APP/WAP linkage can be expected in the future. Profit forecast and rating: The company's net profit for 2016/17/18 was 2,94/3.61 billion yuan, respectively, and the fully diluted EPS was 0.76/0.96/1.16 yuan. The current stock price corresponds to PE 46/36/30 times, respectively, with a diluted market value of 11.7 billion yuan. We believe that the valuation of this acquisition is reasonable. We are optimistic about the two-wheel drive of the company's epitaxial mergers and acquisitions and endogenous development, the synergy between various subsidiaries, and the company's determination to focus on digital marketing strategies. We expect the company to continue to improve its mobile marketing layout through epitaxial methods and continue to maintain the “buy” rating in the future. Risk warning: The acquisition fell short of expectations; macroeconomic downside risk.