Investment highlights: Incident: Tianheng Yinghe, an industrial merger and acquisition fund initiated by the company, purchased 75% of the shares of Boshen Financial Leasing (Shanghai) Co., Ltd. held by Boyu Pioneer with 8 million yuan in cash. After the acquisition is completed, Tianheng Yinghe will continue to increase its capital in order to expand the scale of its financial leasing business. Comment: With the acquisition of Fast Loan, Internet finance has taken a major step forward. 1) The size advantage of Zenda Quick Loan is obvious. Dai Zhikang is the legal representative of Zendai Express Loan. By the end of 2014, Zendai Express Loan had 84 branches across the country, with more than 3,000 employees. The total number of loans in 2014 was 3.125 billion yuan, and the number of loans was 61,600, with an average loan of 50,900 yuan per loan, fully reflecting the characteristics of small amounts and fragmentation, with a loan balance of 3.402 billion yuan by the end of 2014. 2) Zenda Quick Loan's online business is beginning to take shape. Currently, the company's main online products include E-Mortgage and E-Express Loans. E-quick loans refer to small consumer loans issued to office workers, on the basis of continuous and stable work, with wage income as the main source of income. The loan amount for a single E-Quick Loan product is RMB 1-500,000, and the maximum loan period is 36 months. E mortgages refer to small-amount consumer loans issued to borrowers with properties, based on personal mortgage real estate (housing), and subject to employment. The amount and term of this product is similar to E-Quick Loan. 3) Performance commitment and follow-up support guarantee a successful acquisition. Zenda Investment and Cube Investment promise that the total audited net profit after tax (after deducting non-recurring profit and loss) for the second half of 2015 and the first half of 2016 will reach RMB 150 million. Furthermore, since Zendai Investment and Cube Investment have rich experience in the field of Internet finance, Zendai Investment and Cube Investment and their related parties will assist Tianheng Yinghe or its designated agencies and Zendai Quick Loan to develop Internet finance services after the equity transfer is completed. The financial sector continues to expand, and multiple financial businesses are expected to gather on a unified Internet platform. Considering the company's recent successive acquisitions of Bosch Leasing and Tianye Microfinance, the company clearly intends to expand in the financial direction. Considering Zendai Investment and Zendai Express Loan, which is the subject of this acquisition, already have relatively mature experience in the field of Internet finance, and the company is expected to integrate the above financial resources into an Internet platform in the future. Diversification is worthy of attention, and the “gain” rating is maintained. The company's earnings per share in 2015 and 2016 are expected to be 0.27 and 0.43 yuan, respectively. As of June 23, the company's stock price closed at 27.56 yuan, corresponding to PE 102.1 times in 2015 and 64.1 times PE in 2016. The company has begun to develop into the financial and Internet industry and its supporting industries. The average valuation of the relevant counterpart companies in 2015 was 230 times. Considering that Tianye Co., Ltd. is currently in its infancy, it was given a valuation of 120 times 2015, that is, the target price is 32.4 yuan, maintaining an “increase” rating.