Joining forces with the Hangzhou Tower to build a regional commercial leader, the huge commercial asset value provides a high security border. The company is a leading department store retail company in Zhejiang Province. It has a rich history. It has four main stores, including Jiebai Shopping Plaza, Hangzhou Tower Shopping Mall, Jiebai Yiwu Store, and Jiebailanxi Store. First, the headquarters “Jiebai Shopping Plaza” is based in the Hubin business district and is close to West Lake, which brings impressive traffic, and commercial property value is huge. Positioned in the middle and high-end, it consists of three property buildings: New Century, Tower B, and Xinyuanhua, with a total volume of 130,000 square meters. Second, the Hangzhou Tower has been at the top of the country's single-store department store sales rankings all year round. It is a top luxury shopping landmark in Hangzhou. It is located in the bustling Wulin business district in the region. The four buildings in Tower A, Block B, Block C, and Block D have a total floor area of 180,000 square meters. After the Hangzhou Tower went on the listing platform, it formed a multi-brand and differentiated business pattern, laying a solid foundation for the company to win the leading commercial position in the province. Furthermore, the company opened department store chain branches in Yiwu and Lanxi, and opened the “Hangzhou Jiebailingyin Shopping Center” in key scenic tourist areas in Hangzhou, and is involved in fields such as tourism and private brand development, further enhancing the market radiance and influence of long-established brands. Conservatively, it is estimated that the asset will be revalued at $15 billion. The current market value is only 7.8 billion, and there is room for revaluation of 92%. Get involved in medical+sports, transform the modern service industry, and dig deeper into the value of high-net-worth customers. Over the past two years, the company has actively transformed and explored medical, sports and other fields to explore the value of core high-net-worth customers in multiple dimensions. Specifically, the first is getting involved in medical treatment. In November '15, the company teamed up with Baida Group and Dian Diagnosis to jointly establish Zhejiang Yihe International Health Management Co., Ltd. (the company invested 27 million yuan, accounting for 45% of the shares) to provide full-process health management and medical services covering the entire life cycle for high-net-worth social customers, and actively try to explore the health service industry. Second, get involved in sports. In January, it was announced that the company plans to invest 9.2921 million to increase the capital of Yuesheng Sports Brokerage Company (accounting for 65.63% of the registered capital after the capital increase). The original controlling shareholder of Yuesheng Sports was Hangzhou Sports Development Group, which authorized the management and operation of municipal sports state-owned assets. This investment is the company's initial attempt to expand the sports business. In the future, it may collaborate with rich resources such as stadiums under the Hangzhou Sports Group to accelerate the pace of sports development. Follow the reform process of state-owned enterprises. First, the majority shareholder of the company is Hangzhou Commerce and Tourism Group, a wholly state-owned company formed by a joint restructuring of the former Hangzhou Commercial Asset Management Company and Hangzhou Tourism Group. Its business covers six major sectors, including commercial retail, wholesale, and catering services. In the future, along with the gradual implementation of Zhejiang's state-owned enterprise reform policies, high-quality assets under the Group may be injected and integrated. Second, promote state-owned enterprise reform at multiple levels: ① Central level. The “Opinions on Key Tasks to Deepen Economic System Reform in 2016” suggests that the guiding opinions on state-owned enterprise reform should be fully implemented, and the state-owned assets management system should be reformed and improved. The publication of the “Opinion” will push forward the reform process of state-owned enterprises from the top down and speed up the pace of policy implementation. ② Local level. Recently, Zhejiang issued a provincial state-owned enterprise classification and supervision policy, clearly implementing the effective separation of functional and competitive business sectors, and state-owned enterprise reform has entered a period of comprehensive acceleration. ③ Company level. The department store industry has strong expectations for reform of state-owned enterprises due to its state-owned assets background and competitive environment. As a leading department store in Zhejiang Province, the company is backed by the Hangzhou Trade and Tourism Group and has strong resource endowments. Future or beneficial asset injections will continuously increase the asset securitization rate and broaden the long-term development space. Upgraded to “Buy-A” rating. The company's main business is department store retail. It is located in the core business district of Hangzhou, and its huge commercial value provides a high margin of safety. Actively explore industrial expansion, successively enter the medical and sports fields, and broaden profit channels. Major shareholders are rich in resources, and expectations that they will benefit from the reform dividends of state-owned enterprises will continue to strengthen. We expect EPS to be 0.43 yuan, 0.47 yuan, and 0.51 yuan respectively in 16-18. The current stock price is 25 times, 23 times, and 21 times PE, respectively. The target price for 6 months is 14.09 yuan, which is raised to a “buy-A” rating. Risk Warning: Investment projects fall short of expectations