Event: The company published its 2012 annual report. During the reporting period, the company achieved operating income of 3,213 billion yuan, a year-on-year decrease of 1.25%; realized net profit attributable to shareholders of listed companies of 260 million yuan, a year-on-year decrease of 2.86 percent; and realized basic earnings per share of 0.24 yuan. The profit distribution plan is to distribute a cash dividend of 0.75 yuan (tax included) for every 10 shares. Investment advice: Under regulation, the company's debt situation is good, and it maintains an “increase in holdings” rating. The company's real estate business is entirely concentrated in Tianjin, covering commercial housing, guaranteed housing, and first-class land development business. Since last year, the company has increased its reserves for guaranteed housing projects (involving 1.2 million square meters of guaranteed housing built on behalf of agents). Currently, the company's equity construction area totals 4.37 million square meters (not considering the 1,700-acre Hangu Hexi land reclamation project), which can meet the company's development over the next three years. In the context of real estate regulation, the company maintained a cautious mindset, so its debt and cash flow were good, and the advance income per share was high. We expect the company's 2013 and 2014 EPS to be 0.18 yuan and 0.22 yuan respectively, and the corresponding RNAV is 6.89 yuan. As of April 2, the company closed at 3.25 yuan, corresponding to PE 18.51 times in 2013 and 14.71 times PE in 2014. 55% of the company's RNAV was given as its target price, corresponding to the target price of 3.79 yuan, maintaining the company's “increased holdings” rating.