Main idea 1. Leveraging the advantages of the platform, Beijing Eddy International School is a “high-end” brand for domestic and international education. It provides kindergarten, elementary school, middle school, high school, and international university preparation courses and English training courses. The school has about 2,600 students. The company took advantage of the platform to seize superior target resources. After investing in British education, the company went further in the field of international schools. 2. Complete the K12+ international education ecosystem layout and look forward to future industry integration capabilities. After completing the acquisition of Longwen Education, the company has a rapid education layout: 1) invests in British education to get involved in international education; 2) plans to acquire Little Red Riding Hood to lay out preschool education; 3) plans to acquire Eddy's Education to take international education to the next level. At this point, the company has completed the ecological layout of the K12+ international school. We believe that the company has strong execution, firm determination to transform, and has a strong first-mover advantage. In the future, I am optimistic about the company's further layout of online and offline education and the ability to integrate the education industry chain. 3. Investment advice: Considering Little Red Hat and British Education, not considering this acquisition, the company's net profit for the 2016 to 2018 exam preparation was RMB 229/2.77/334 million yuan, respectively, and the corresponding EPS was RMB 0.15/0.18/0.22, respectively. The company's suspension price is 9.41 yuan, corresponding PE is 63/52/43 times. I am optimistic about the company's ability to integrate the education industry chain in the future, and I recommend it. Additional performance betting: 1) Long Wen Education promised that the total net profit for 2015-2018 would not be less than 563.8 million yuan; 2) British Education promised that the net profit after tax in 2016 to 2019 would not be less than 1000/1300/1690/21.97 million yuan, respectively; 3) Little Red Hat promised that the net profit for 2016 would not be less than 50 million yuan, and the compound annual growth rate of net profit for 2017-2019 would not be less than 15%. 4. Risk warning: Education acquisition falls short of expectations, integration risk