Matters: Hainan Expressway issued a pre-performance announcement. It is estimated that net profit attributable to shareholders of listed companies will increase by 100%-150% over the same period last year, achieving a profit of 107 million to 133 million yuan. The performance exceeded expectations, mainly due to a sharp increase in real estate carry-over income. The company's revenue mainly comes from highway compensation, real estate sales revenue, and hotel tourism business. The highway compensation and hotel travel business are relatively stable, and it is estimated that the two together will contribute about 30 million yuan in profit; in terms of real estate sales, the company's current sales projects include Ruihai Water City Phase I in Qionghai and Ruihai Garden in Sanya, with a sales area of about 200,000 square meters. It is estimated that the average price of Ruihai City and Ruihai Park can reach 8,000 yuan/square meter and 15,000 yuan/square meter respectively, while the floor price is only 1,800 yuan/square meter, locking in a high profit margin. Land reserves are abundant, costs are extremely low, and abundant cash flow enables the company to speed up land acquisition and development. Currently, the company has more than 1 million square meters of projects in hand, which is enough for the company to develop for the next 3 to 5 years. All land will be acquired before 2010, the average ground price will not exceed 500 yuan/square meter, and the cost is extremely low. The company has about 800 million yuan in cash in its hands. The expressway is similar to the “debt service bond” business model, bringing stable and abundant cash flow. The company has accelerated land reserves through various channels such as auctions, transfers, and acquisitions. Benefiting from the development of the Hainan International Tourism Island. Hainan's unique resources and the country's strong support for building an international tourist island have greatly contributed to the rise in real estate prices in Hainan. In the current rapid rise in housing prices in Hainan, the biggest beneficiaries are actually developers such as the Hainan Expressway that obtained land at a very low cost in advance. Improve profit forecasts and maintain “recommended” ratings. Due to the good sales of the company's projects, the speed of carry-over and improvement of profit forecasts, it is predicted that the company's 2010-2012 EPS will be 0.12 yuan, 0.22 yuan, and 0.31 yuan, respectively, with a closing price of 5.85 yuan on January 17, and the corresponding PE of 48.8, 26.6, and 18.9 times, respectively. Given the company's stable and abundant cash flow and good land reserves, the construction of Hainan International Tourism Island has promoted real estate business and hotel tourism business and maintained a “recommended” rating.