Investment points: Dalian Friendship plans to issue shares to Wuxin Investment Group and Wuxin Management Company to purchase their total holdings of 100% of the shares of Wuxin Guarantee Group, 100% of the shares of Wuhan Small and Medium Guarantee Company, 90% of the shares of Wuhan Venture Guarantee Company, 100% of the shares of Wuhan Credit Company, 100% of the shares of Wuhan Credit Company, 90% of the shares of Wu Xin Rating Company, and 70% of the shares of Hanxin Internet Finance. The net profit attributable to the owners of the parent company in 2016/2017/2018 is not less than 63.781 million yuan, 75271 10,000 yuan, 862.36 million yuan. The Hanjin Institute's self-built system was launched this month, and the asset side mainly relies on the group. At the end of December, the total investment amount was nearly 500 million, and there were nearly 20,000 registered users. The business was not promoted on a large scale in 2015, mainly considering the high cost of switching between the original system and the new self-developed system. After the new system was launched this month, system security was improved, and at the same time it was connected to the WeChat Pay terminal to increase customer attraction. The future focus will be on large-scale development. The investment amount in 2016 is expected to be as low as 2.6 billion yuan, aiming for 5 billion yuan and more than 200,000 users. Currently, the asset side and corresponding risk control of the Hanjin Institute mainly rely on the Wuhan Credit Investment Group, which mainly focuses on corporate operating loans. In the future, cooperation with external consumer loan platforms will also be considered to increase consumer credit products and achieve product diversification. The focus is on leveraging the advantages of guarantee business and supporting scale expansion through capital increases. Guarantee subsidiaries such as Wuxin Guarantee Group are the main profitable companies in the target assets. At the same time, 2 billion yuan is also used in supporting financing to increase the capital of Wuxin Guarantee Group. Compared with its original registered capital of 1 billion yuan, the capital increase ratio is large. On the one hand, it is not ruled out that it will continue to increase capital in the future. On the other hand, it is mainly based on the risk management experience it has accumulated over many years, in line with the phased trend of major integration in the guarantee industry. By building a financial services industry chain to meet the diversified needs of customers, the guarantee business module will expand. Credit reporting data covers industrial and commercial enterprises throughout the city, and personal credit reporting licenses are being applied for. The Wuhan Credit Company was founded in 2003 and is the sole contractor of the Wuhan social credit reporting system. The database mainly summarizes information on the public sector in Wuhan, including information on industry and commerce, social security, public security, public security, etc. Among them, social security data is updated in real time, covering all industrial and commercial enterprises in Wuhan. Currently, enterprises have credit reporting qualifications, are developing market-based business, mainly providing supporting services to the government, and personal credit reporting licenses are being applied for. Financial transformation helps new developments and maintains an increase in holdings rating. Considering that the company's ancillary financing increased the capital of Wuxin Guarantee Group by 2 billion yuan, which greatly supports its profit, the net profit attributable to the parent company from 2016 to 2018 is estimated to be about 6.57, 9.27, and 1,232 billion yuan, corresponding to EPS of 0.51/0.72/0.96 yuan. If the restructuring is successfully completed, the corresponding market value is 17 billion yuan. Considering the transformation and development brought about by the injection of financial assets and the increase in the business volume of the Hanjin Institute, a target market value of 28 to 30 billion yuan is given. Risk warning: The economy has accelerated to the bottom, and asset restructuring and supporting financing plans have fallen short of expectations.