Guide to this report: After the company acquires Internet Harbor, it will have the core ability to develop hybrid cloud services. The market has not fully recognized the core advantages of mergers and acquisitions. We know that the Internet Port has DCI service capabilities to help the company become a leader in hybrid cloud services. Key investment points: First coverage, “increased holdings” rating, and target price of 17 yuan. We believe that in the hybrid cloud era, DCI network service capabilities will constitute a core competency, and the market generally ignores this. The company plans to acquire Internet Harbor. It is a leading DCI service provider in China and will help the company build a leading hybrid cloud service leader. The company's 2016-2017 EPS is estimated to be 0.21 yuan/0.28 yuan, respectively. Referring to A-shares comparable to cloud computing companies, and considering the premium brought about by mergers and acquisitions, the company was given 81 times PE, with a target price of 17 yuan, which is 53% of the current price. A “increase in holdings” rating is recommended. DCI network service capabilities are the core competency of hybrid cloud service providers. Hybrid cloud boosts the rapid explosion of IDC exchange traffic. Judging from the growth rate, IDC exchange traffic grew the fastest in 2014-2019, with a compound growth rate of 31%, which is a new growth engine for future network traffic. As hybrid clouds advance rapidly, the problems of traditional IP network architectures such as inefficient bandwidth, poor performance, and long business deployment cycles are becoming more and more prominent. The DCI network can provide IDC direct connection services for hybrid clouds, which is the core network service capability. The company acquired a connected port, deployed DCI services ahead of schedule, and had the core competitiveness of hybrid cloud services. The Internet Port IDC+SDN service effectively solves the business needs of customers to deploy global coverage in one place. Currently, it has independent BGP networks in Beijing, Shanghai, and Guangzhou, and has MPLS backbone networks throughout the country. The company has the ability to provide connectivity to IDCs in many places, enabling the company to enter the hybrid cloud service market with a strong advantage. Catalyst: The rapid expansion of hybrid cloud services in the connected harbor. Risk warning: Competition in the traditional business market is intensifying, and the performance of M&A targets falls short of expectations.