According to the Macquarie report, the current departure of Hengsheng founder Zhang Zhirong will raise questions from the outside world, and whether the new management can bring about a change in execution and strategic direction is questionable. It will also take time to prove that they are better than their predecessor. The bank maintains a “neutral” rating for Hengsheng, with a target price of 1.16 yuan. Macquarie quoted yesterday's analyst meeting. Zhang Zhirong indicated that he will no longer participate in the company's daily operations, is concerned about Hengsheng's profitability, has no plans to sell Hengsheng's shares, and will not participate in the real estate industry. Hengsheng Real Estate announced yesterday that Zhang Zhirong resigned as chairman of the company because he hoped to focus more on private business. Cheng Lixiong, the former vice chairman and CEO, took over as chairman, and Liu Ning, the former chief operating officer, took over as CEO. Macquarie pointed out that Hengsheng's contract sales from October to October were 9.8 billion yuan, down 19% from year to year. It was only 75% of the annual target, which was lower than 98% of the market average. The bank believes that Hengsheng's sales will remain flat for the next two years, but its high gross margin is conditional on the removal of goods at reduced prices.