Events:

The company publishes its 2014 annual report. During the reporting period, the company realized operating income of 3.181 billion yuan, a year-on-year increase of 81.83%; net profit belonging to shareholders of listed companies was 168 million yuan, an increase of 17.16% over the same period last year; and basic earnings per share was 0.15 yuan. The company's dividend scheme distributes cash dividend of 0.46 yuan (including tax) for every 10 shares.

Investment advice:

The company is expected to expand in other places and maintain its "overweight" rating. The company's real estate business is all concentrated in Tianjin, covering commercial housing, indemnificatory apartment and first-class land development business. Since last year, the company began to increase the reserve of indemnificatory apartment project (involving the construction of 1.2 million square meters on behalf of indemnificatory apartment). At present, the total construction area of the company's rights and interests is 4.37 million square meters (not considering the Hangu Hexi land consolidation project of 1700 mu), which can meet the development of the company in the next three years. In the context of real estate regulation, the company is cautious so that its debt and cash flow are good, while the advance income per share is higher. We estimate that the company's EPS in 2015 and 2016 will be 0.19 yuan and 0.24 yuan respectively, and the corresponding RNAV will be 6.66 yuan. As of March 19, the company closed at 5.19 yuan, compared with 27.02 times PE in 2015 and 21.31 times PE in 2016. Give the company RNAV as its target price, corresponding to the target price of 6.66 yuan, to maintain the company's "overweight" rating.