Key investment matters: Yantian Port released an annual report and profit distribution plan. The company achieved operating income of 360 million yuan in 2011, a year-on-year decrease of 13.47%; net profit of 430 million yuan, a year-on-year increase of 3.93%; earnings per share of 0.285 yuan, lower than our expectations of 0.32. The main reason is that the net profit profit of Huiyan Expressway and terminal investment income both declined year-on-year, and Caofeidian Port Company's share acquisition time was later than our expectations, and profit contribution was limited. The company's profit distribution plan is to pay a cash dividend of 3.5 yuan (tax included) for every 10 shares, and the capital reserve fund is transferred to 3 shares for every 10 shares. The main business, Huiyan Expressway, net profit and terminal investment income both declined. The company's main business was road transportation and warehousing leasing. The main reason for the decline in revenue was that the Huiyan Expressway was affected by factors such as the diversion of the surrounding road network, and revenue fell 10.27% year-on-year; instead, because of the transfer of the Wutongshan Tunnel in March, the Wutongshan Tunnel was no longer consolidated in the second quarter, and consolidated revenue decreased by 30.98 million yuan over the same period last year. Against the backdrop of the European debt crisis, the slowdown in domestic import and export growth, and a year-on-year decline in all ports in Shenzhen Bay, Yantian Port still achieved a 1% increase in throughput in the entire port area in 2011, reaching 10.26 million TEU, relying on good water depth conditions and efficient operation capabilities. However, since the last port of the three expansions was put into operation at the end of 2010, the distribution coefficient for phase 1 and 2 to which the company belongs declined. Plus, the tax revenue for phase 1 and 2 increased from 22% to 24%, terminal investment income declined. The high cash dividend ratio highlights the company's investment value. Since taking office in 2010, the company's new management has actively carried out various businesses, sought the development of the main business, and carried out extended expansion. These include transferring 50% of the shares in Wutongshan Tunnel, acquiring 2% of Yantian International's shares in Phase 1 and 2, investing in the construction of the Huizhou Port Coal Terminal, and the acquisition of 35% of Caofeidian Port Company's shares. The company has been suspended and is expected to be related to the acquisition of the Group's Phase III assets. The current cash dividend of 0.35 yuan per share corresponds to the closing price of 5.02 yuan, and the dividend rate is as high as 7%. The high cash dividend ratio highlights the company's investment value. Our analysis believes that the majority shareholders' lack of money is the reason behind the company's high cash dividends, which also highlights the proactive attitude of the group management. Against the backdrop of major shareholders' lack of money, the company, as its only listed company platform, has a balance ratio of only 7% and plenty of cash on the account. The possibility of using the listed company platform to finance the overall listing is not ruled out. Wait for the company to resume trading and announce major asset restructuring matters. It has been more than 3 months since the company's “highly recommended” company was suspended due to important matters. It is expected to be related to the acquisition of Phase III of the Group and the third expansion of assets. According to our analysis, the acquisition plan mainly focuses on three issues to increase performance: 1. The profitability of the injected asset; 2. The price of the asset injection; and 3. The asset injection plan. Detailed analysis can be found in Yantian Port's in-depth report “Diversion Impacts Are Coming to an End, and Asset Injection Expectations Are Strong”. Regardless of asset injection, we expect the company's EPS in 2012, 2013, and 2014 to be 0.32, 0.34, and 0.37 yuan respectively; if asset injection is considered, the 2012 performance increase can reach 42%-60% according to our assumptions. Considering the aggressive attitude of the company's management, if the acquisition of the group's assets is successful, an increase can be expected after the resumption of trading, maintaining a “highly recommended” rating.