Investment advice: A basic overview of the company. The company's main business includes real estate development and contract construction. The company's real estate business has accumulated reserves of 10 projects, involving 2.75 million square meters of construction area and 2.58 million square meters of equity construction area. Judging from the settlement scale, we expect that the company will still have about 2 million square meters of settlement area in the future. Currently, the average land reserve cost for enterprise projects is less than 1,200 yuan per square meter. According to the current average sales price of the enterprise of 6,800 yuan per square meter, future projects still have good profit margin. The company's contract construction business is small and in its infancy. Hefei is a leader in state-owned enterprise reform, and has a gorgeous transformation into a financial control platform. It has and is its only position worthy of close attention. 1) The majority shareholder officially changed. On March 5, 2015, the company received a notice from Hefei State-owned Assets Holdings Co., Ltd., the largest shareholder, to transfer all state-owned shares of listed companies to Hefei Xingtai Holding Group Co., Ltd. free of charge. After the completion of the free transfer mentioned above, Hefei State Holdings will no longer hold shares in the listed company; Xingtai Holdings will hold 185316118 shares of the Company, accounting for 57.89% of the total share capital of the Company. 2) There is a unique position that deserves close attention. It is worth paying close attention to that on the day Hefei Urban Construction shares were transferred to Xingtai Holdings, all shares in Hefei Department Store held by Xingtai Holdings were transferred to Hefei Construction Investment Holdings. Hefei Xingtai no longer holds any shares in Hefei Department Store. Meanwhile, Hefei Guofeng Group was transferred to Hefei Industrial Investment Holdings. According to the current state-owned platform framework, the three major platforms of financial holding, urban construction investment, and urban industrial investment all have and are the only listed companies. Hefei Urban Construction followed the trend and became the only listed company with the highest percentage of state-owned shares in Hefei and the only financial holding platform (previously, Hefei Xingtai also held 6.26% of Meiling Electric's shares, making it the second largest shareholder of the listed company. On March 5, 2015, Meiling Electric announced that all shares held by Hefei Xingtai will be transferred to Hefei Industrial Investment Holdings (Group) Co., Ltd.). 3) The asset situation of Xingtai Holdings. The future majority shareholder of the company, Hefei Xingtai Holding Group Co., Ltd. was established in 2002. It is a large wholly state-owned company in Hefei, with a registered capital of RMB 2 billion. The company's main business is finance, with the goal of building a financial holding company. On behalf of the Hefei Municipal Committee and Municipal Government, the company undertakes the heavy responsibility of establishing and improving the local financial service system in Hefei. The company's business scope already covers 13 financial and pan-financial fields, including banking, securities, insurance, credit guarantees, asset management, equity transactions, trusts, funds, financial leasing, pawnbrokers, venture capital funds, and venture capital. It has successively nurtured large central, provincial and regional financial institutions such as Huishang Bank, Jianxin Trust, and Hefei Science and Technology Agricultural Commercial Bank. As of December 31, 2014, Hefei Xingtai Holding Group had total assets of 12 billion yuan and net assets of 5.6 billion yuan. Financial assets accounted for more than 87% of total assets, and the authorized state-owned assets increased at an average annual rate of 23%. Analysis of the value of urban construction in Hefei. 1) The current real estate business has a certain margin of safety. With the exception of a small amount of the company's real estate business located in Sanya, Hainan, the rest is concentrated in Anhui Province. We expect the company's real estate business RNAV to be 11.38 yuan per share. 2) Comparing Guangzhou Friendship and Chaodong, it has the value of urban construction in Hefei. Currently, the market value of Hefei is lower than that of Guangzhou Friendship (Guangzhou Financial Holdings Platform) and Chaodong Shares (Anhui Rural Finance Company). We believe that future development roadshows are expected to change after the majority shareholders of the company change, and the current stock price is attractive. Investment advice. Without considering any asset injection expectations, we expect the company's earnings per share in 2015 and 2016 to be 0.68 yuan and 0.78 yuan, respectively. As of April 7, the company closed at 18.35 yuan, corresponding PE of 26.99 times and 23.53 times in 2015 and 2016, and the corresponding RNAV was 11.38 yuan. We believe that future development roadshows are expected to change after the majority shareholders of the company changed, and were given 30 times PE in 2015, with a target price of 20.4 yuan, and the first “increase in wealth” rating. Risk warning: There is currently uncertainty about whether the majority shareholders of the company have assets to inject.