Incident: On October 18, 2014, the company announced that the 7th meeting of the 8th board of directors of the company in 2014 reviewed and approved the “Plan for Non-public Issuance of A Shares”. The company plans to issue shares to no more than 10 specific targets through non-public offering. The pricing reference date for this non-public stock offering is the announcement date of the resolution of the 7th meeting of the 8th board of directors of the company in 2014 (October 18, 2014). The stock price in this issue is not less than 10.68 yuan/share. The number of shares to be issued this time will not exceed 187.3 million shares, and the total capital raised will not exceed 2 billion yuan (including issuance fees). It is intended to be used for the Pingtan Haitianfudi Beautiful Village and Tourism and Leisure Resort Comprehensive Development Project and the Pingtan Strait Medical Park Construction Project (Phase I), and to supplement the company's working capital. Investment proposal: The completion of this fixed increase investment project will enhance the company's tourism development and medical service capabilities, inject new profit growth points into the company, and lay the foundation for the company's strategic transformation. The company's various projects in Pingtan are progressing in an orderly manner, and the benefits are initially reflected. Previously, the company had formed a “forest board integration” development pattern. Currently, it operates 1 million mu of forest area, produces 15 million pine cedar seedlings per year, and has an annual production capacity of 450,000 cubic meters of fiberboard. In terms of performance, China Fujian Material City pre-sold in the second half of the year; the concrete project has been put into operation and sold; the “Wanbaoshan Park” BT project has been tested and settled; the Pingtan Zhonghui Small Loan Company, which is the main sponsor, has shown benefits; the company and the Taiwan Ronggong Consortium won the bid for the Jinjing Bay and Eastern Sewage Treatment Plant BT projects. We expect the company's 2014 and 2015 EPS to be 0.11 and 0.48 yuan, respectively. As of September 12, the company closed at 12.45 yuan, corresponding dynamic price-earnings ratios of 117.91 times and 25.90 times, respectively. In 2015, the company will benefit from benefits such as the expiration of forestry restrictions, expansion of concrete production, settlement of BT projects, pre-sales in China and Fujian Lumber City, and fixed increases to drive business transformation. Considering that the company is a listed company registered and directly benefiting from the Pingtan Experimental Zone, we refer to the PE valuation of Waigaoqiao (600648.SH), which directly benefits from the Shanghai Free Trade Zone. If we take the company's EPS of about 0.48 yuan in 2015 and 31.95 times the PE valuation of Waigaoqiao in 2015 (taking 32 times the PE valuation), we can see that the reasonable valuation of the company is 15.36 yuan, maintaining the “gain” rating.