Announcement/News: Yantian Port announced its 2011 annual report. During the reporting period, the company achieved operating income of 360 million yuan, a year-on-year decrease of 13.5%; realized net profit attributable to shareholders of listed companies of 430 million yuan, an increase of 3.9% over the previous year; and achieved basic earnings per share of 0.29 yuan. Cash dividends of 3.5 yuan (tax included) are distributed for every 10 shares, and the share capital is increased by 3 shares for every 10 shares to shareholders using the capital reserve fund. Maintain a “neutral” rating. The company is expected to achieve fully diluted earnings per share in 2012-2014 of 0.24 yuan, 0.24 yuan, and 0.25 yuan (considering the impact of stock transfer). The PE corresponding to the current stock price is 21.8X, 21.8X, and 21.4X, and the latest PB is 1.6X. Maintain a “neutral” rating. The performance was in line with expectations, and the 2011 dividend plan exceeded expectations. (1) The company achieved operating income of 360 million yuan and net profit of 430 million yuan in 2011, which is in line with our expectations (we expect 449 million yuan) and the market's unanimous expectations (Chaoyang Yongshun sellers unanimously expect 429 million yuan). (2) The company distributes cash dividends of 3.5 yuan for every 10 shares, and the corresponding dividend yield per share is 7% (before tax, measured at the latest closing price). At the same time, the share capital was increased by 3 shares for every 19 shares. The dividend ratio exceeded previous years and exceeded our expectations. Going north to invest in Caofeidian made a profit in the first year, becoming a major growth point for the company's performance in the future. (1) The company went north to participate in Caofeidian Port Co., Ltd. in 2011, began confirming shares in November 2011, and obtained an investment income of 20 million yuan in the first year. The investment income after annualization based on 35% equity was 120 million yuan. (2) The future will become the main growth point for the company's performance. Caofeidian is in a period of rapid growth, with an 80% increase in profit in 2011 compared to 2010, and will continue to be the main source of Yantian Port's performance growth in the future. The operations of Yantian International and the Westport area are facing challenges. In 2011, the two regions completed a total container throughput of 3.3 million TEU, but the year-on-year decline was 9%, mainly due to the economic downturn in Europe and the US and the diversion of surrounding ports. We expect that with the economic recovery of Europe and the US in moderating, the diversion impact of surrounding ports may continue; on a quarterly basis, the decline in the company's throughput in the second half of the year (-9% for the whole year) surpassed that of the first half of the year (-7%). The risk of us forming this judgment is that the economic recovery in Europe and the US exceeds expectations and that the diversion impact of neighboring ports falls short of expectations.