In 2009, the net profit of the main business increased by 91% compared with the same period last year. The company today released its quarterly report for 2010: operating income was 356 million yuan, down 87.5% from the same period last year; operating profit was 176 million yuan, up 20.1% from the same period last year; net profit belonging to the parent company was 112 million yuan, down 39.5% from the same period last year; net profit after deducting non-recurring profit and loss was 118 million yuan, up 90.8% from the same period last year; earnings per share was 0.76 yuan, and net assets per share was 4.27 yuan.

Fewer carryable resources and year-on-year growth in performance in the first quarter of 2010 were mainly due to a low base in the same period last year. The operating income was 22 million yuan, an increase of 429.4% over the same period last year; the operating profit was 8 million yuan, compared with a loss of 3 million yuan in the same period last year; the net profit attributed to the parent company was 6 million yuan, the loss in the same period last year was 3 million yuan, the income per share was 0.04 yuan, and the net assets per share was 4.31 yuan.

A small comprehensive developer with multi-regional layout. The company carried out a major asset restructuring in 2008: it sold its refined oil distribution business, bought a 90% stake in Rongfeng Real Estate, and transformed its main business into real estate development. The company mainly has three projects: Beijing Rongfeng Jiayuan (construction area 320,000 square meters), Chongqing Cimushan project (construction area 390,000 square meters), Changchun International Financial Center (construction area 210,000 square meters), with a total construction area of more than 900,000 square meters.

The company's performance in 2009 is characterized by "reducing income and increasing profit". The main reason for the decrease in operating income from the same period last year is that there was income from oil product distribution in 2008, but not in 2009. The year-on-year increase in net profit from the main business is mainly due to the increase in gross profit margin. There are two reasons for the increase in gross profit margin in 2009: first, the change in income structure and no income from oil product distribution this year; second, the year-on-year increase in gross profit margin in the real estate business (thanks to the carry-over of some commercial projects).

The uncertainty of the performance in 2010 is very low. In 2010, the company mainly participated in the settlement of Beijing "Rongfeng Jiayuan" stock houses and bottom merchants, by the end of March 2010, the amount received in advance was only 10 million yuan, the performance uncertainty is very low.

Profit forecast and investment rating. We expect the company's earnings per share from 2010 to 2011 to be 0.44 yuan and 0.84 yuan respectively. Based on the latest closing price of 12.21 yuan, the corresponding dynamic price-to-earnings ratio is 28 times and 15 times respectively. The valuation level is high, and the company's reserves are small and the performance fluctuates greatly. from the perspective of value investment, we maintain the company's "neutral" rating.