Key points of the report Incident description The company issued a foreign investment announcement. It plans to invest a total of 12.75 million yuan to increase the capital and expand shares of Haijie Technology. After the capital increase and stock expansion project is completed, Haijie Technology's registered capital will increase from 5 million yuan to 10 million yuan, and the company's shareholding ratio will reach 51%. Haijie Technology is a professional software company specializing in professional consulting, project implementation, software development, and system integration in the fields of business intelligence (BI), data warehousing, and databases. It achieved a net profit of 638,000 yuan in 2012. Incident review Mergers and acquisitions of big data companies will enhance Nantian's main business advantage: currently, banks only use 15% of their own structured data, and use is generally limited to data collation and simple analysis. With the current rapid development of Internet finance, e-commerce and other carriers, the banking industry still needs to use big data to break data boundaries, thereby improving the foresight and accuracy of banking services and strategic decisions. Since the launch of Nantian's core business system (OFP CoreBanking), it has been successfully promoted and used by many financial institutions such as China Construction Bank, Bank of China, Minsheng Bank, Everbright Bank, Bank of Communications, China Postal Savings Bank, urban commercial banks, rural credit unions, etc., and has a certain customer base. The current merger and acquisition of big data companies is expected to form complementary effects in customers and technology, consolidating Nantian's advantages in financial business modeling and high-end consulting, and creating the possibility of further expanding the target customer base. Currently, the business intelligence field is still in its infancy, so there is no need to pay too much attention to mergers and acquisitions. Since consulting, implementation, and development in the fields of business intelligence, data warehouses, etc., have high requirements for enterprise professionalism, comprehensiveness, and focus, and domestic enterprises still place low importance on the field of business intelligence, there are few high-quality targets in the industry, demand release is only in the embryonic stage, and most business intelligence enterprises are in the stage of marginal profit or loss. Haijie Technology already has a certain amount of customers and technology accumulation in industries such as finance, telecommunications, and FMCG. Although the company's current size is small and net profit has fluctuated greatly, the compound revenue growth rate of 37% in the past three years reflects the company's good business trend. Therefore, with Nantian's epitaxial expansion in this field, business synergy will be more important than sharing performance. The company faces great opportunities for development, but there is still uncertainty, and it is given a “careful recommendation” rating: We believe that under the industry opportunities of upgrading the core banking system and reshuffling of self-service terminals with high additional cash, the company relies on long-term accumulation of bank customer relationships and technology accumulation, and is expected to seize this opportunity to form a certain business breakthrough and gradually break out of the traditional low-barrier integrated business dilemma. However, considering that the banking decision chain is long, there is still uncertainty about the bank's core system market, when VTM will break out, and the rate of decline in traditional business. After the merger and acquisition, we raised the company's EPS in 13-15 to 0.31, 0.41, and 0.54 yuan to maintain the “careful recommendation” rating.