An Internet marketing company based on big data technology, with four wholly-owned subsidiaries, Taiyi refers to an Internet marketing company based on big data technology. Currently, it has four wholly-owned subsidiaries, including Dega Information, Taiyi Data, Taiyi Media, and Inventory Information. Among them, Dejia Information and Taiyi Data are mainly engaged in the research, development and application of big data technology, and Taiyi Media is mainly engaged in Internet marketing business. It includes a complete marketing service chain including creative advertising planning, media placement, monitoring of marketing effectiveness, and optimization and improvement. Inventory information is mainly engaged in connecting and reselling media resources. The four subsidiaries form a full-process business chain for big data Internet marketing, which can efficiently provide advertisers with integrated Internet marketing solutions. According to Taiyi, it is still a medium-sized company among pure Internet marketing companies and achieved an operating income of 369.65 million yuan in 2015. Compared with companies with similar industry business, it is a medium size company. Currently, the Internet marketing market is scattered, and no absolute giants have emerged. Taiyi pointed out that after becoming a subsidiary of a listed company, it is possible to raise capital more easily in the capital market and continuously improve the technology moat. At the same time, listed companies can carry out a more complete layout in the Internet marketing field through continued acquisitions. The profitability of the Internet marketing business was above average. Revenue increased by 40.06% year on year. According to statistics on Internet marketing companies with public information and similar business models to Taiyi (including Papaya Mobile, Bihe Technology, Domai Co., Ltd., Silver Orange Media, Yima Online, Armor Network, etc.), the average gross margin of the Internet marketing business is about 22.04%, and Taiyi indicates that the gross margin of Internet marketing is 29.58%, which is higher than the industry average. For big data marketing companies, high or low gross margin often indicates the company's technical ability to clean, screen, and optimize Internet traffic after obtaining third-party Internet traffic, as well as its ability to conduct business negotiations with customers. Data analysis and service business — the possibility of maintaining high gross margin Currently, Taiyi pointed out that data management and analysis software technology developed independently is more expensive when sold abroad, but as competitors continue to imitate and similar products continue to increase, the challenges facing this segment of business may make it difficult to maintain a gross profit margin of more than 90% through the original sales model. However, it is also seen in the company's acquisition plan that management plans to “gradually reduce the price of software platform sales and derive more profit from the value-added services provided to customers.” The valuation assumes that the company's original business remains stable and the cost structure has not changed significantly; with the success of this acquisition, Taiyi indicated that it still achieved promised net profit of 55 million, 85 million and 122 million yuan in 2016, 2017, and 2018, respectively. The company's original share capital was 356,613,052 shares. After the acquisition and financing were completed, the share capital was expanded to 569,455,647 shares. We expect the company's 2016-2018 EPS to be 0.14/0.20/0.26 yuan/share, respectively, and the PE corresponding to the closing price of 14.51 yuan on July 11 is 104/73/56 times, giving it an “increase in holdings” rating.