Event: The company released its 2013 interim report. According to the interim report disclosed on July 29, the company's revenue for the first half of the year was 458 million yuan, up 16.82% year on year; net profit was 574.33 million yuan, up 19.98% year on year; and basic earnings per share of 0.079 yuan. Opinion: Performance was the best in four years, with earnings per share up 19.98% year over year. In the first half of the year, the company achieved operating income of 458.307 million yuan, an increase of 16.82 percent over the previous year, operating profit of 79.678 million yuan, an increase of 5.22 percent over the previous year, net profit attributable to shareholders of listed companies of 57.433 million yuan, an increase of 19.98% year over year, and a net asset of 2.01 yuan per share attributable to shareholders of listed companies. The company's performance has been declining since 2009, and net profit increased relatively well in the first half of this year. The project is well prepared, and development will continue. The company currently has a land reserve of about 2.44 million square meters, which can meet the company's development needs for 3-5 years, and the land cost is relatively low. Reserve projects are mainly distributed in second- and third-tier cities with relatively developed economies. The level of purchasing power is high, and the market conditions and market space are large. High-quality land reserves provide a good guarantee for the company's future development. In addition to obtaining land through bidding in the secondary market, the company also obtained projects through equity acquisitions. The company's projects such as Tianxiang Xiyuan, Wuhan Lijingwan, and Qingdao's Jiayuansheng have all been acquired through equity acquisitions. The group where the company is located currently has strong overall strength and high brand awareness. The manufacturing industry under the group plays a huge role in driving regional economic development. Therefore, relying on the overall strength of the group, the company is more proactive in negotiations when expanding into new regions, which is conducive to the acquisition of the company's projects. Finances are sound, and financial expenses have declined markedly. The company's expenses were controlled relatively well last year and a half. Management expenses, sales expenses, and financial expenses reached 28 million yuan, 11 million yuan, and 101 million yuan respectively. Although sales expenses increased slightly by 4% in the first half of the year, management expenses and financial expenses declined markedly, down -11% and -72% respectively from last year. In particular, the decline in financial expenses was particularly obvious. This shows that the company's financial risk is low. The company is financially sound. The company's balance ratio in the first half of the year was only 55.12%, which is quite stable compared to the industry's high debt ratio. Investment advice: We believe that the company currently has three tier cities in the east and economically developed provincial capitals in the middle and western regions, and that the development potential of the region is huge. In the future, with economic growth and social investment in the central and western regions, demand for real estate will continue to be strong, and the company is expected to reap a lot in the later stages; in the future, the company will gradually increase the proportion of hardcover houses and commercial real estate, diversify its business structure, effectively distribute business risks, and enhance brand competitiveness; the company will continue to deepen and improve management, follow the path of fine management, strictly control costs, and improve project operation efficiency. Furthermore, with the steady development of the Wolong Group as a whole, Wolong Real Estate, as one of the three major businesses under the Group, is expected to enjoy the synergy brought about by the interaction between the Group's industries. We expect the company's sales revenue from 2013 to 2015 to reach 1,394 billion yuan, 1,765 billion yuan and 2.62 billion yuan respectively, with earnings per share of 0.26 yuan, 0.33 yuan and 0.54 yuan respectively, and corresponding PE of 13.15, 10.47 and 6.35 yuan respectively. Maintain the company's “Recommended” rating.