The traditional textile business is expected to benefit from supply-side reforms. The company's main business is textile printing and dyeing and seamless steel pipe processing, accounting for 65% and 35% respectively. The steel pipe business is still in a state of loss. The sharp drop in crude oil prices and strong support from new energy sources have led to a decline in the prosperity of the seamless steel pipe market, which targets petroleum products. Profits mainly come from the contribution of the textile printing and dyeing business and the transfer proceeds from the transfer of 19% of shares in the Zhuji Great Wall International Film and Television Online Game Animation Creative Park in the fourth quarter of last year. The company currently has a printing and dyeing production capacity of about 80 million meters, making it one of the top 10 printing and dyeing industries in the country. China's annual printing and dyeing production is almost 50 billion meters. Currently, the entire industry is in a highly fragmented state. Under Zhejiang Province's high-pressure policy of stepping up efforts to rectify the printing and dyeing industry, we expect that industry concentration will increase further, and advantageous enterprises will gain more market share. Since March 1, printing and dyeing enterprises in Shaoxing have increased processing fees by 5% to 20%, and the company's textile printing and dyeing market share and profit margins are expected to open up room for improvement. Acquire Taiyi Zhishang to enter the Internet marketing industry. The company plans to issue 133 million non-public shares at 751 yuan/share and pay 202 million yuan in cash to acquire 100% of Taiyi Index's shares at a total price of 1.2 billion yuan. The Taiyi Index mainly relies on the advantages of big data technology to provide customers with Internet marketing and marketing data analysis and services. It estimates 2015 operating income of 393 million yuan and net profit of 28.3847 million yuan, and promises that the net profit for 2016-2018 will not be less than 55 million yuan, 85 million yuan and 122 million yuan respectively, with a three-year compound growth rate of about 50%. In recent years, the Internet marketing layout of listed companies has shown a cluster effect. Since the second half of 2015, 10 precision marketing companies have entered the new third board, including Umi Mobile, Silver Orange Media, Diandian, etc., all with a market capitalization of more than 1.5 billion yuan. According to iResearch data, the size of the online advertising market is expected to exceed 400 billion yuan in 2018. Internet marketing is currently in a stage of rapid growth. The Big Three BAT companies account for the top three Internet marketing market shares. Therefore, for precision marketing companies, the main business model is real-time bidding for programmatic advertising purchases, and the second type is agency business for large platforms such as BAT. Taiyi pointed out that it still falls into the former category, using big data precision technology to carry out precise marketing for advertisers. We believe that customer resources and platform resources are the key points of Internet marketing companies. Currently, Taiyi indicates that it still has its own advertising platforms on the PC Internet (CCM), mobile Internet (Finger Client), and interactive television (AdSmart), and has its own big data analysis platform “Atlas Cloud Map,” but for the time being, there is little direct cooperation with terminal advertisers, but instead serves terminal advertisers indirectly through cooperation with various advertising agencies or advertising agencies. Taiyi Index is still the first governing body of the China Digital Marketing Committee. At the end of 2015, it received awards such as the Advertising Industry's Best Resource Integration Award, the Most Innovative Online Marketing Company Award, and the Ministry of Industry and Information Technology's Most Innovative Enterprise Award. According to the latest news disclosure, Jiang Yougui, the chairman of the company, was elected as the 10th vice president of the China Business Advertising Association in January this year. We will continue to track whether it will achieve a breakthrough in the company's end customer resources. The diversified layout is still worth looking forward to. Since 2011, when management acquired 81% of the majority shareholder Furun Holding Group through Zhejiang Zhuji Huifeng Venture Capital Co., Ltd., the company has followed a diversified layout, covering various fields such as culture, film and television, equity investment, etc., holding 8.82% of Shangfeng Cement's share capital as the fourth largest shareholder, and investing 100 million yuan to establish Zhejiang Furun Internet Industry Investment Company. A successful acquisition is expected to form a diversified business of “traditional industry+big data+Internet”, yet according to the company's announcement, the acquisition of Taiyi indicates that it is only the first step in the company's Internet+ sector layout. First coverage, giving a “careful recommendation” rating. Assuming that the acquisition is successful and the performance promise is fulfilled, then considering that the share capital was expanded to around 490 million shares after the merger and acquisition, the EPS contributed by the big data marketing business in 16-18 was 0.11 yuan, 0.17 yuan, and 0.25 yuan respectively. Currently, the corresponding PE is estimated to be 96 times, 62 times, and 42 times, respectively. Short-term performance will be further diluted after the fixed increase, but considering that the current valuation does not calculate the profit contribution of traditional businesses and the possibility of future Internet+ acquisitions, it is given a “careful recommendation” rating. Risk warning: 1) The acquisition did not meet expectations; 2) the traditional business fell far short of expectations; 3) the company's systemic risk.