Investment advice: Losses in 2015 were close to half of the company's net assets, and revenue for the fourth quarter fell 7/8 year-on-year compared to the fourth quarter of 2013. Minmetals development is clearly very painful right now. However, the pain is not terrible; whether you can grasp the direction of the future is the key. At this point, the company did a lot of real work in 2015. Strategically, e-commerce platforms, smart logistics, and marketing networks are clearly proposed as basic support, focusing on large and medium-sized steel mills and small to medium end users downstream of steel, and establishing a comprehensive service model for imported commodities and an integrated integrated distribution service model for small to medium steel end users. In terms of business support, Alibaba Venture Capital has been introduced in e-commerce platforms to jointly develop steel e-commerce; in terms of smart logistics, the other three steel logistics parks other than Lanzhou have already been put into trial operation, and the “distribution+logistics park” model launched has received a positive response from steel mills; in terms of marketing networks, it has already achieved nationwide distribution, and has about 200 marketing and logistics outlets in the form of distribution companies, processing centers, and port companies. In 2015, the company also carried out a major clean-up of baggage. The divestment of Minmetals Iron and Steel, and the placement of Minmetals and Minmetals Precious Iron has been further clarified, and business and assets have been further focused on the main line of steel circulation. At the same time, large-scale write-downs of bad loans were carried out, and asset impairment totaled 2,966 billion yuan. We believe that the company's current strategy, layout and business are conducive to strengthening its position and competitiveness in the industry, and is one of the most powerful competitors driving the transformation of the steel distribution industry. However, how to turn a company's competitive advantage into profit also requires further answers to questions such as when the revenue scale will reverse, how to do steel e-commerce, and how is the profit model for the company going public. The company is expected to achieve operating income of 69.567 billion yuan, 90,783 billion yuan, and 111.74 billion yuan from 2016 to 2018. The estimated net profit is 235 million yuan, 514 million yuan and 714 million yuan respectively, equivalent to EPS of 0.22 yuan, 0.51 yuan and 0.67 yuan per share, and will continue to be given a buy-A rating, with a target price of 22.5 yuan for 6 months. Risk warning: Steel consumption has declined more than expected, and e-commerce is not progressing smoothly.