Incidents: The company recently issued a series of announcements: 1) The Securities Regulatory Commission approved the company's issuance of shares to acquire assets and raise supporting capital; 2) The 2015 performance report showed that operating income and net profit from the parent increased by 15.85% and 367.51% respectively; our view: The 2015 annual report results stemmed from Shanghai Xinhe and some traditional business sales. In 2015, the company achieved operating income of 965 million yuan (YoY 15.85%) and net profit of 29.828,400 yuan (YoY 367.51%). Revenue growth slowed due to the sale of subsidiaries Lianchuang Technology and Shandong Zhuoxing, while the company's net profit increased significantly through the merger of Shanghai Xinhe during the reporting period. Among them, the net profit contribution of Shanghai Xinhe to the second half of 2015 (that is, the net profit consolidated into the profit statements of listed companies) was 52.289,800 million yuan, while Lianchuang Chemical's loss of 1,62218 million yuan in 2015 had a significant negative impact on the performance of the whole year. Currently, the company has signed an equity transfer agreement with natural person Shao Xiuying to transfer all 75% of Lianchuang Chemical's shares held by listed companies. The company has gradually abandoned traditional business burdens and achieved a light launch. The issuance of shares to acquire assets and raise supporting capital was approved by regulation, and the company's development began a new stage. The company announcement has received approval from the Securities Regulatory Commission, and this round of mergers and acquisitions is about to be implemented. This round of mergers and acquisitions and fund-raising enabled the company to purchase two high-quality assets, Shanghai Jichuang and Shanghai Lindong, into the corporate system, and jointly promoted the company's deep transformation to digital marketing with Shanghai Xinhe. At the same time, it is proposed to raise no more than 1,229 billion yuan to supplement the company's working capital and ease debt pressure, providing momentum for the company's subsequent development. Both the Shanghai New Cooperation and the proposed mergers and acquisitions exceeded their performance commitments. In 2015, Shanghai Xinhe, Shanghai Jichuang, and Shanghai Lindong achieved net profit of 128.1644 million yuan, 75.943 million yuan, and 43.9922 million yuan respectively. The corresponding gambling performance was 10 million yuan, 70 million yuan, and 34 million yuan, exceeding the promised profit. It is expected that the 2016 results will continue to be exceeded. Earnings forecasts and ratings. We estimate that the company will raise supporting capital through targeted issuance at an issue price of about 60 yuan/share (estimated value), then the estimated number of shares issued is about 204.807 million shares. In addition to the number of shares issued to target asset shareholders to purchase assets, 16.6734 million shares are expected. We expect the total share capital after issuance to be about 37.1541 million shares. We expect the company's net profit for exam preparation in 2015-2016 after the acquisition is completed to be 2983/26750/321.88 million yuan, corresponding to the above estimates EPS of 0.23/1.64/1.98 yuan, and 347/48/40 times the PE stock price corresponding to March 28, respectively. Since the issuance of shares to acquire assets and raise supporting capital has not yet been completed, if the above matters are not considered, the net profit for 2015-2018 is expected to be 2983/13400/177 million yuan respectively, corresponding to the current share capital EPS of 0.23/1.07/1.41, respectively, and 343/74/56 times PE corresponding to March 28, respectively. The performance of the company's proposed mergers and acquisitions continued to exceed expectations, extensions continued to open up new possibilities, and the 2016 exam preparation valuation was relatively low after all mergers and acquisitions were completed, maintaining the company's “buy” rating. Risk warning. business model unviable risk; equity acquisition failure risk; risk of industry development falling short of expectations; macroeconomic risk; national policy risk;