Guide to this report: Lianchuang Internet will accelerate the pace of industrial transformation in building a closed loop of internet marketing services, and may open up room for growth through continuous investment in mergers and acquisitions. The first coverage gives an “gain” rating, and the target price is 25.3 yuan. Key investment points: The first coverage gives an “gain” rating, and the target price is 25.3 yuan. Lianchuang Internet is actively carrying out strategic transformation around the Internet marketing industry to establish a closed loop of marketing services in the Internet field. We judge that the pace of the company's industrial transformation is accelerating, or that it may open up room for growth through continuous investment and mergers and acquisitions. The company's net profit for 16-18 is estimated to be 2.62 2/3.32 billion yuan, corresponding to EPS of 0.44/0.56/0.68 yuan, respectively. Referring to the average price-earnings ratio of 47 times in the Internet marketing industry, considering that the company's industrial layout brought upward flexibility in performance, Lianchuang Internet was given a target price of 25.3 yuan (corresponding to the price-earnings ratio of 58 times in 2016), and a “gain in equity” rating. The Internet marketing service landscape is beginning to emerge. As traditional business has entered a bottleneck in development in recent years, the company has actively carried out strategic transformation, divested the original chemical sector business, and focused on the Internet marketing service industry. Since 2015, the company has basically achieved full coverage of the Internet marketing service sector through the acquisition of companies such as Shanghai Xinhe (100% equity), Shanghai Jichuang (100%), and Shanghai Lindong (100%). Establish a closed loop of internet marketing services. According to the announcement, the company is positioned as a “Lianchuang Digital” Internet marketing service provider with comprehensive digital integrated marketing capabilities to establish a closed loop of “big data analysis+procurement of superior resources+native content supply” marketing services. We judge that the pace of the company's industrial transformation is accelerating, and the company's focus on integrating the Internet marketing business may lie in two aspects: (1) integrating the existing Internet marketing business to explore internal resource value after mergers and acquisitions; (2) integrating other segments (such as the media side and data side) through endogenous or epitaxial methods around the Internet marketing industry. Catalysts: completion of the non-public offering of shares; epitaxial implementation of the Internet marketing industry layout, etc. Core risk: The company's Internet marketing layout integration progress is lower than expected.