The merger of Guosheng Securities led to an increase in the company's performance. As of the third quarter of 2016, the company achieved total operating income of 1.102 billion yuan, an increase of 32.34% over the previous year; net profit attributable to shareholders of listed companies was 232 million yuan, an increase of 643.23% over the previous year. Among them, Guosheng Securities announced on May 6 that the company officially began the path of financial transformation. Handling fees and commission income for the securities business included in the consolidated statement during the reporting period was 287 million yuan, of which 182 million yuan was achieved in a single quarter in the third quarter. At the same time, thanks to the funds raised, the company achieved interest income of 190 million yuan. Currently, the company's business is divided into three segments: securities, investment, and cables. Guosheng Securities, as the core of the securities sector, is the main contributor to the company's net profit and the key to the company's growth. The company plans to buy 5% of Happy Times shares to share growth opportunities in the consumer finance market. The company announced plans to purchase 5% of the shares of Beijing Happy Times Technology Development Co., Ltd. held by Beijing Phoenix Xiangrui. Among them, Beijing Happy Times operates products such as Qudian (Qudian) and Lai Installment. Phoenix Xiangrui holds 19.24% of its shares. Phoenix Xiangrui's executive affairs partner is controlled by the actual controller of Guosheng Financial Holdings, and this acquisition constitutes a related transaction. The acquisition amount was 375 million yuan and did not involve major asset restructuring. Currently, the deal has yet to be approved by the shareholders' meeting. Fun installment targets young people such as white-collar workers and blue-collar workers and provides instalment services, and has accumulated over 10 million users. Happy Era achieved revenue of 233 million yuan and loss of 533 million yuan in 2015, which rose to 478 million revenue and 158 million net profit in 2016. Growth is rapid. If the transaction is successfully completed, it can effectively increase the net profit of listed companies. The financial control platform continues to be built, and the majority shareholders' resources help the company develop. Following the acquisition of Guosheng Securities, the company successively subscribed to 110 million US dollars of Lujin's B shares, participated in the establishment of an insurance company (which is still in the approval process of the Insurance Regulatory Commission), and plans to acquire Beijing Happy Times shares. This series of actions shows that the company's majority shareholders' resources in the financial field will effectively help the company improve its financial control layout and achieve extended development and expansion. Financial forecasting and investment advice. We forecast the company's earnings per share for 2016-2018 to be 0.48, 0.80, and 0.94 yuan respectively. The valuation is based on comparable listed brokerage firms. The adjusted net market ratio is expected to be a consistent average of 2.8 yuan. We predict that the company's net assets per share at the end of 2016 are 12.46 yuan, receiving the company's target price of 34.88 yuan, maintaining the buying rating. Risk warning. The capital increase of Guosheng Securities fell short of expectations, and the progress in obtaining financial licenses fell short of expectations.