Key investment points: Acquisition of 80% of Jinwang Antai's shares. The company announced the acquisition of 80% of Beijing Jinwang Antai's shares at a price of 960 million yuan, including 144 million yuan in cash consideration. The net profit promised by GoldNet Antai from 2016 to 2018 was 80 million yuan, 104 million yuan, and 135 million yuan respectively. In this transaction, GoldNet Antai's overall valuation was about 1.2 billion yuan, corresponding to its net profit promised in 2016 about 15 times PE. The price of shares issued by the capital raised this time was 90% of the average price of the company's shares in the 20 trading days before the pricing benchmark date, or 36.95 yuan/share. Goldnet Antai has great advantages, enhancing the core competitiveness of the company's supply chain financial IT services. In the field of supply chain finance, grasping real transaction relationships and data is the key to developing follow-up financial services. Jinwang Antai is a transactional e-commerce software product and service provider with the largest share of the domestic OTC trading market, providing IT solutions for more than 300 commodity trading markets and e-commerce platforms of group enterprises to meet the development needs of different customers at different stages; while the company has been deeply involved in the financial IT field for 20 years and has strong supply chain financial information system construction and successful cases and customer resources such as Ping An Bank, etc., this acquisition is conducive to further developing the supply chain financial IT service field and enhancing core competitiveness. Industrial network+technical service+financial service platform, the technology finance industry chain is more complete. The acquisition of Jinwang Antai will, on the one hand, bring significant performance gains to the company in terms of traditional e-commerce software platforms; on the other hand, the future expansion direction is to collaborate with upstream and downstream enterprises to carry out supply chain information trade, capital, warehousing and logistics management, and build an industrial networking system; at the same time, Zhongyihui will provide member units with technical services such as data management; while Zongyihui owned by Jinwang Antai is a leading domestic commodity and OTC market trading platform. The more than 2 million high-net-worth users accumulated through mobile terminals will combine the company's existing bank customer resources to create a comprehensive financial consulting and service platform. Further expand the company's financial technology service industry chain. In the era of technology finance, companies are increasing research on cutting-edge technology and industrial applications. The supporting capital raised this time is a scenario-based consumer finance cloud platform for banks, a financial risk management platform based on big data, a supply chain finance cloud platform, a next-generation R&D center, and research on forward-looking technologies such as blockchain digital currencies. As early as the central bank proposed digital currency, the company has followed up research on cutting-edge technologies such as blockchain, and the company has deep accumulation in bank clearing and payment, and the future is also a potential growth point for the company. Profit forecasting and investment advice. Assuming that Jinwang Antai is combined at the end of 2016, we predict that the company's net profit from 2016 to 2018 will be 164 million yuan, 271 million yuan, and 334 million yuan, respectively. The EPS after considering additional and diluted share capital will be 0.62 yuan, 1.02 yuan, and 1.26 yuan, respectively. The compound annual growth rate for the next three years will be 40.2%. Currently, the company's stock price corresponds to 45 times the price-earnings ratio in 2017. Considering the expansion prospects of the company's supply chain finance, scenario finance, and financial risk management platforms based on big data in the context of technology finance, and the valuation level of comparable technology finance companies, we believe that the company's reasonable market value corresponds to the 2017 EPS of about 60 times PE, with a target price of 61.2 yuan. The first coverage gave it a “buy” rating. Risk warning. The expansion of supply chain finance applications fell short of expectations; mergers and acquisitions fell short of expectations.