Key investment events: 1) The company plans to acquire 69.76% of the shares of YOKA (YOKA); 2) the initial size of the company's M&A fund is set at 900 million yuan; 3) the M&A fund plans to acquire 100% of the shares of the overseas bidding mobile advertising platform Smaato for US$148 million. Comment: Kaiming Fashion is the pioneer of new online fashion media in China. 1) The company has two main brands, YOKA Fashion Network, YOKA Mobile, and Fashion App, to provide diversified information and services for high-end Chinese consumers to “share fashion and quality of life”. 2) In 2015, YOKA reduced non-net profit of 11.13 million yuan, an increase of 134% over the previous year, and promised that the net profit for 2016/17/18 would not be less than 40,000/5200/64.25 million yuan, respectively. Acquire Kaiming Fashion and improve the digital marketing layout. As a leading integrated marketing service group in China, the company has acquired Kaiming Fashion this time. On the one hand, it has collected high-end customer resources in the downstream fashion sector to further expand the company's business scale horizontally; on the other hand, it enhances the company's ability to control upstream high-quality media resources in digital marketing, optimizes the cost structure, and enhances the company's continued profitability in the future. Earnings forecasts and ratings. The company included YOKA's 2015/16/17 exam preparation net profit of RMB 2,00/2.38/278 million respectively, fully diluted EPS of RMB 0.29/0.35/0.41, respectively, and the current stock price corresponding to PE of 31/26/22 times. Since the company has successively acquired Haoye and YOKA since 2015, its layout in the digital marketing sector has continued to flourish; after establishing a merger and acquisition fund, the continued integration of the future industrial chain will also contribute to upward elasticity (the intended acquisition of Smaato is the first step) and continues to maintain the “increase in holdings” rating. Risk warning: M&A integration falls short of expectations; macroeconomic decline.