Incident: The company issued an announcement on the evening of April 21 and signed a “Strategic Cooperation Agreement on the Digital Service Platform Construction Project” with the Linfen Municipal People's Government. The government agreed that the company would develop and build a digital service platform in Linfen City. Report summary: The signing of Linfen Tong marks that the company's Internet finance model can be replicated throughout the country. The company and the Linfen Municipal Government agreed to develop and build a digital service platform through “government coordination and market operation”. The plan is to complete the goal of deploying 100,000 smart terminals to serve 100,000 small and micro businesses in Linfen City and handle 6 billion yuan in capital, and build an urban B2B financial management environment to enrich the financial channels of small and micro merchants. At the same time, the goal of issuing more than 2 million copies of the Linfen City Card has been achieved, and the smartphone “Linfen Pass” client has been released, so that citizens can enjoy various government and social services more conveniently, and achieve the goals of convenience, benefit, and service for the people. This move shows that the company's Internet finance model can be promoted throughout the country and will provide new profit growth points. Build a merchant treasure for small and micro enterprises and a payment gateway for local people. With small and micro merchants as its customer base, the company serves small and micro merchants accounting for more than 80% of the number that large banks cannot cover. At the same time, through B2B2C for small and micro merchants, it is possible to serve citizens who are unable to use mobile payment methods such as mobile banking and WeChat Pay. The company's payments use cards as carriers, which can further enhance confidentiality and security, and make ordinary citizens more acceptable. In addition to not being able to withdraw money, the future function of the City Card will completely replace cash, become a safe and reliable physical “currency,” and become the “payment channel” effect that the company wants to achieve. On this basis, companies can also graft through merchant connections and engage in microloans. In the future, they can develop a series of financial services such as merchant loans and small loans. The most grounded model of internet finance. Through Guohua Huibin, the company comprehensively transforms the Internet financial integrated service provider, and obtains data assets such as flow information of small and micro merchants, payment information of individual customers, and consumption habits through payment, so as to provide credit search means for future small and micro loan services for individuals and small and micro enterprises, and at the same time achieve accurate marketing of various products sold locally. Furthermore, it is possible to open up interfaces with major banks to build a credit bridge for banks, small and micro merchants, and individual consumers. The company can obtain commission benefits from matching transactions without taking risks. We are optimistic about the company's Internet finance model, which is beneficial to the four parties. Profit forecasting and valuation. The company's EPS for the year 14 and 15 is expected to be 0.20 and 0.31, and PE corresponding to the current stock price is 72X and 47X, maintaining the “increase in holdings” rating. The target price is 20 yuan.