Key investment points: The proposed acquisition of 100% of Taiyi Shang's shares will transform the Internet marketing big data service sector. The company plans to acquire Taiyi Zhishang (hereinafter referred to as the “target company”) by issuing shares to acquire assets and raise supporting capital. The purchase price is 1.2 billion yuan, of which 132,949,125 shares are to be issued to acquire 100% of Taiyi Jishang's shares, and it is proposed to issue a total of no more than 79,893,470 shares to raise a total of no more than 600 million yuan in supporting capital. The promised net profit for 2016-2018 is 5,500/8500/122 million yuan. The target company is a technology-based company that relies on big data technology to provide customers with Internet marketing services and marketing data analysis services. After this transaction, Zhejiang Furun will transform into the Internet field based on this. Taiyi said it still has a deep background in big data technology, and its technical advantages are obvious. The company mainly relies on the advantages of big data technology to provide customers with Internet marketing and marketing data analysis and services. Currently, among the company's three subsidiaries, Dejia Information is mainly engaged in research and development of big data technology; Taiyi Media is mainly engaged in Internet marketing business, including a complete marketing service chain with content such as creative advertising planning, media placement, monitoring of marketing effectiveness, and optimization and improvement; and inventory information is mainly engaged in connecting and reselling media resources. In the future, as a holding company, the target company will collaborate with the three subsidiaries to jointly lay out the upper, middle and lower reaches of the industrial chain to form the entire industrial chain layout. Currently, the company provides services to customers through three data sources: advertisers' own data, data obtained through service provision, and technology obtained through legal purchases from third parties or the use of crawler technology. Media resources are no longer scarce, and increasing traffic value has become an important competition point for internet marketing. In the Internet age, there are many types and quantities of Internet media resources, and massive amounts of information can be stored, tracked, and measured over and over again. Thus, full competition among media is not scarce. Although leading media have obvious advantages, concentration is still low compared to traditional media. For these reasons, Internet media sales policies are gradually becoming more transparent and stabilized. Therefore, Internet marketing will break the relationship-intensive business model of traditional media or the early stages of Internet development in the past. The focus of competition is either on large-scale projects to reduce the cost of purchasing media resources, or on increasing the added value of individual traffic to increase service charges. The company has advanced data advantages, technical means and industry experience. It uses big data to provide customers with a range of services such as accurate placement, post-investment inspection and analysis, etc., to generate a competitive advantage by increasing the added value per unit of traffic. Listed companies are determined to transform and actively invest in Internet projects in addition to the target company being acquired. The company invested 10 million yuan (registered capital of 100 million yuan) to establish Zhejiang Furun Internet Industry Investment Co., Ltd., and invested 43 million yuan in 5 projects, including 1) Hangzhou Dongdao Data Technology Co., Ltd. (4 million yuan, accounting for 10% of shares). The main business is a “car service O2O platform” based on mobile Internet; 2) Zhejiang Huarui Industrial Internet equity investment enterprise partnership (limited partnership) (limited partnership) (investment of 5 million yuan, accounting for 3.07% of shares) The main business is equity investment in the Internet industry; 3) Hangzhou Yundou Technology Co., Ltd. (with an investment of 5 million yuan, accounting for 10% of shares), the main business is the development of smart products for children; 4) Hangzhou Ancun Network Technology Co., Ltd. (with an investment of 20 million yuan, accounting for 2% of shares), the main business is electronic data storage and certification services; 5) Zhejiang Zhiyu Information Technology Co., Ltd. (with an investment of 9 million yuan, accounting for 2% of shares), the main business is cross-border e-commerce. In addition, the company's controlling shareholders and management invested more than 80 million yuan to increase their holdings of the company's shares, demonstrating confidence in the company's long-term development. Profit forecast and investment rating: Give an “increase in holdings” rating. We are optimistic that the company's acquisition of Taiyi indicates that Internet transformation and upgrading will be carried out later on this basis. Using big data technology to enter Internet marketing to increase the added value of single traffic will be one of the important trends in the future. Assuming that shares are issued to acquire assets and raise supporting capital, the shares are issued at 7.51 yuan/share (according to the announcement) and 79,893,470 shares respectively as described in the announcement (then a total of 212,842,595, total share capital after issuance is 569,455,647), then we expect the overall net profit of listed companies to reach 1.3/2.9/4.0 billion yuan in 2016-2018. The corresponding diluted EPS is 0.23/0.51/0.70 yuan, corresponding to 2016 The closing price of PE on January 19 was 59/27/19 times, respectively. Since the current restructuring plan has not yet been approved, it is expected that the company's traditional sector business will remain stable without considering this merger and acquisition situation. The estimated net profit for 2016-2018 is 3,000/40/50 million yuan, respectively, 0.08/0.11/0.14 yuan for EPS, and 161/121/97 times the PE corresponding to the closing price on May 19, respectively, giving it an “increase in holdings” rating. Risk warning: risk of restructuring failure; risk of capital market fluctuations; risk of industry development falling short of expectations; risk of unviable business model; risk of company management.