Key investment events: The company announced on March 18 that it will use 522 million cash to acquire 60% of China Education's future shares. This matter does not constitute a major restructuring event, but it still requires consideration by the shareholders' meeting and approval from relevant departments. The consideration for China Education's future 100% share acquisition was 870 million yuan. The target company promised that the net profit to be achieved in 2016/17/18 would not be less than 5,800/6800/79 million yuan, respectively, and the corresponding acquisition consideration would be 15/13/11 times, respectively. Comment: China Education Future is a leading comprehensive education group centered on vocational education in China. 1) The company has now formed a vocational education system in five major sectors: continuing education, international vocational education, IT vocational education, art vocational education, and online vocational education, and is committed to cultivating high-quality applied talents. 2) Rich experience and large scale: The company was founded in 2006 and currently has more than 500 full-time faculty and more than 1,000 part-time faculty and staff. Currently, it has 11 wholly-owned and holding subsidiaries. 3) Many partner institutions: At present, we have established stable cooperative relationships with more than 20 universities, including Peking University, the Central University of Finance and Economics, Beijing Normal University, and the Beijing Film Academy. Profit forecasting and ratings. The company's net profit for 2016/17, including China Education's future exam preparation, is estimated to be 279/290 million yuan, EPS 0.27/0.29 yuan, respectively, and the current stock price corresponding to PE is 35/33 times, respectively. After the company acquired China Education Future, it successfully entered the education market. We are optimistic that the company will use the dividends of the education industry to develop the education business, cover it for the first time, and give it an “increase in wealth” rating. Risk warning: The acquisition fell short of expectations, and the print media was impacted by new media.