Traditional Printing And Dyeing Industry Has Good Supply Side And Reform Has Strength.

Spend 1 billion 200 million acquisition of Tai Yi Zhi Shang, enter big data marketing.

The company issued a notice, through the issue of shares and cash payment in combination, the acquisition of Tai Yi refers to a 100% stake.

After the completion of the paction, the company's main business will gradually expand from the processing and sales of textiles and steel pipes to big data and Internet business, and it is expected to form "traditional industries +".

The diversified business of the Internet.

Supply side reform is good for quality enterprises, and traditional business is expected to benefit.

Serious overcapacity in some industries has become a major obstacle to improving quality and efficiency and stabilizing the economy in China.

This is one of them.

In addition, the G20 summit will be held in Hangzhou in September. The control and control of environmental pollution enterprises in Hangzhou and surrounding areas will be strengthened. The small printing and dyeing factories with high pollution will be closed down, and orders will be concentrated on the large printing and dyeing enterprises with high environmental standards.

In addition, since March 1st, Shaoxing printing and dyeing enterprises have increased processing fees 5%-20%, the company's textile printing and dyeing revenue,

It is expected to improve.

Big data marketing is developing at a high speed, and "Internet +" Dongfeng helps.

With the rise of the "Internet +" trend, many traditional products have gone from line to line, and marketing has become an essential demand. "Internet +" has brought about a substantial increase in demand side, on the other hand, it has enriched the data sources and facilitating the construction of a more complete and large database.

With the further popularization of smart phones, the habit of Internet users has changed. The number of mobile Internet users has increased year by year, and the online advertising industry has also focused on mobile terminals.

The multi screen complementarity of smart devices, the behavior of consumers from the "holistic" to "fragmented" characteristics, prompting the marketing industry to further precision, cross screen marketing has become a major trend in the industry.

Tai Yi Zhi Shang: making use of the first mover advantage and innovating to highlight the tight encirclement.

From the point of view of time, Thailand refers to the first batch of researchers and experience accumulators who conduct big data research and technology development in China.

Taone refers to its business capability and big data technology in the leading position in China. In 2014, it launched the first cross platform multi screen purchase platform in China.

In the context of diversification of users' Internet and fragmentation of time, Tai Yi has become a leader in cross screen marketing, and can help it break through in many big data marketing service companies, maintain highly accurate and effective marketing services, and seize market share.

Risk warning: the risk of M & a performance is less or less than promised; the risk of multi business integration is not as good as expected; and the risk of the main business continues to be sluggish.

Valuation and rating: we expect the company's 2016-2018 years EPS to be 0.27 yuan, 0.39 yuan, and 0.48 yuan respectively. Shen Wan classification printing and dyeing industry in 2016 agreed that the average value is 37 times. Considering the new business expansion of the company, the extension expectation is strong. We believe that the company's 50 times valuation in 2016 is more reasonable, corresponding to the target price of 13.5 yuan.

First cover, give "buy" rating.