The company's management is facing a transformation in the near future, and we believe that the future team of professional managers will be more suitable for the market and the company's own development requirements, and it will be difficult for the company's performance to improve significantly in the short term. We maintain the company's "prudent recommended" investment rating.

Interim results exceeded market expectations: in the first half of 2010, the company achieved a main income of 1.166 billion yuan (YOY39.13%) and a net profit of 166 million yuan (YOY876.47%). The performance increased significantly compared with the same period last year, mainly because the carry-over of the projects of Linping Tiandu City, Nanan Huacheng, Tonghe Goya and Nanjing Dengfuxiang led to an increase in profits in the current period, and the company realized EPS0.19 yuan, which exceeded our expectations. The company's project development will be based on Tiandu City, with proper allocation of some fast turnover projects: in August this year, the company newly obtained Yu Zheng hang out (2010) 52 project, which is the follow-up part of the Tiandu City project. we think that the company will mainly digest the existing projects in Tiandu City for a period of time, and the company will also appropriately assist in doing some fast turnover projects to increase current profits. The change of the management of the company has come to an end: the chairman, general manager, deputy general manager, secretary and other senior executives of the company have changed this year, and we believe that the future management of the company will be more market-oriented. Major shareholders hope to improve the company's development and management ability by recruiting a team of high-quality professional managers. Performance forecast and investment rating: we expect the company's EPS in 2010, 2011 and 2012 to be 0.43 yuan, 0.48 yuan and 0.58 yuan respectively. After obtaining the new project, the company's RNAV in 2010 is 5.15 yuan. In view of the current situation in the real estate industry, we appropriately reduce the company's target valuation, we give the company's share price in 2010 15 times PE, that is, the target value of 6.50 yuan, to maintain the company's "prudent recommendation" investment rating; risk hint: the company's project sales may be lower than market expectations.