Key investment points The real estate development business is nearing completion of development. The company's real estate development business is located in Chengdu, and currently the company has only two projects. The projects are all located in Xipu Town, Pixian County, which is the closest location to the central city in the suburbs of Chengdu. The asset structure is good, and the cash on hand is sufficient. There are no interest-bearing liabilities on the company's books, but according to the 2015 annual report, cash and short-term wealth management products totaled more than 1.1 billion yuan, and the margin of safety is sufficient. The company's 2015 annual report had 485 million yuan in cash on hand, and held a total of 652 million yuan in various capital protection and prudent wealth management products. The company has a good asset structure. The balance ratio for the first quarter of 2016 was only 26.35%, and the balance ratio after excluding accounts received in advance was only 20.38%. The development and manufacturing business of special FRP fiber products for rail transit is developing rapidly, with great potential. The company invested 98 million yuan to acquire 49% of the shares in Qingdao Kangping Railway FRP Co., Ltd. Qingdao Kangping Railway FRP Co., Ltd. is a company focusing on the production of supporting products related to EMU trains and urban rail transit vehicles. In 2015, the company achieved a total investment income of 15.203,500 yuan from Qingdao Kangping Company. The medical service business has entered actual operation and is progressing rapidly. The company's medical investment platform is Beijing Changshenggu Hospital Management Co., Ltd. At present, the medical clinic management business under its subsidiary has entered the stage of actual operation. Beijing Yumai Medical Clinic, a subsidiary of Changshenggu, is currently the only clinic in Beijing where almost all experts from Peking Union Medical College Hospital work independently, providing patients with high-quality medical services. The incentives are fully in place, covering most middle and senior employees. The company launched stock options and restricted stock incentive plans in February 2016. Currently, the implementation process is in progress. A total of 61 people have been incentivized, and a total of 10.67 million shares of benefits have been granted. Among them, the company plans to grant 3.5 million stock options to 59 incentive recipients (registration has been completed), and it plans to grant 7.17 million restricted shares to 17 incentive recipients. The unlocking conditions are that net profit deducted from non-return parents in 2016 and 2017 is not less than 5791.88 and 64,124,400 yuan, respectively. The current incentive plan covers a wide range of areas, and incentives for important key personnel are fully in place, which will effectively mobilize the enthusiasm of management and important cadres, and effectively combine the interests of shareholders, companies and employees. Investment advice: The company is a typical “small but beautiful” company. There are no interest-bearing liabilities on the company's books, but the total amount of cash and short-term wealth management products in the 2015 annual report exceeds 1.1 billion yuan, and the margin of safety is sufficient. Currently, the company's initial investment areas include comprehensive real estate development, R&D and manufacturing of special FRP fiber products for rail transit, and various industries such as medical services. We believe that the company has huge potential for future development. The 2016-2018 EPS is expected to be 0.25, 0.29, and 0.35 yuan respectively, and the corresponding PE is 52.1, 44.9, and 37.2 times, respectively, giving a rating of increased holdings for the first time. Risk warning: Real estate project sales fall short of expectations; transformation progress falls short of expectations, etc.