Event: In the first quarter of 2016, Wuzhou Transportation achieved net profit of 94.978 million yuan, an increase of 155.01% over the same period last year; operating income of 303 million yuan, a decrease of 64.53% over the same period last year. Key investment points: The divestment of mining assets has shown the effect of stopping losses and increasing profits. The company changed its leadership team in April 2015 to carefully reorganize its business. In view of the prominent trade risk situation, the company initiated the transfer of 67% of the shares of Tanghan Company, 100% of the shares of Nanxing Company and 51% of the shares of Guotong Company, and successfully completed all transfers at the end of 2015. In the future, the company will basically suspend commercial activities for bulk-traded products and will no longer operate in the mining industry. After gradually divesting the mining business, the company achieved net profit of 94.978 million yuan in the first quarter of 2016, an increase of 155.01% over the same period last year. The effect of stopping losses and increasing profit was obvious, the company's balance ratio was restored, and profitability increased. There are both internal and external improvements, and rapid main business growth is stable. In 2015, the efficiency of the company's highway sector increased steadily: benefiting from the increase in bus tolls in the “Notice on Adjusting Highway Vehicle Toll Standards in Our District” issued by the Guangxi Expressway Administration in August 2014, and the steady rise in overall road vehicle traffic within the company's area, road tolls increased 8.52% over the same period last year. Furthermore, the company has now determined the development goal of “returning to the main business”, and will expand and strengthen the main business of highway operations. On the one hand, it will acquire existing high-quality and mature highway assets, and on the other hand, raise capital to build new highways. The company will also actively explore the asset management potential of expressway companies along the route and re-bid for the operation project in the Tanbai Road Service Area to increase rent revenue and broaden the sources of pipeline leasing and advertising revenue. Vigorously develop the logistics industry: It is proposed to build a cross-border e-commerce platform, or involve the fields of intelligent transportation and cold chain. The company disclosed on January 28, 2016 that it will launch a cross-border e-commerce platform project. It plans to use the existing resources of Nanning Jinqiao Agricultural Products Co., Ltd., Guangxi Pingxiang Wantong Logistics Co., Ltd., the company's holding subsidiaries, and the company's highway resources to build an e-commerce public service platform, accelerate cross-border e-commerce cooperation with Southeast Asian countries, and jointly build a comprehensive cross-border e-commerce service platform with neighboring ASEAN countries. Realize online trading of high-end food and agricultural products and full offline cold chain distribution to ensure convenient and secure transactions. The company announced that it is currently exploring the development of intelligent transportation, will actively contact universities or scientific research institutions, study the use of highway network data, build a big logistics information platform, and develop the big data industry. We believe that the difficulties facing the development of traffic big data are that the acquisition of the data is consistent with its reliability, analysis and prediction models, and later development and utilization models. As a listing platform under the provincial trading platform, the company has access to traffic flow data within the autonomous region and is rich in information resources. What is foreseeable is that the company can apply the results of data research to the field where its own highways are combined with logistics parks to enhance user experience and improve the level of highway management, thereby playing an active role in the scientific and rational layout of the logistics park industry and the introduction of logistics park traffic. The company is currently actively promoting the implementation of this project, and we will pay close attention to this. The approval of the Beibu Gulf Free Trade Zone has entered the sprint stage. If the Beibu Gulf Free Trade Zone is approved, the company will directly benefit, and Guangxi's economic and trade development will be the direct driving force for the company's performance: in the highway sector, Tanbai Road is an important transportation route for the southwest region to the sea, and Cenluo Road, as a convenient link between Guangxi and Guangdong, has remarkable geographical advantages and good profit prospects; in the logistics park sector, Jinqiao Logistics Park is the largest agricultural products trading center in the province. The Beibu Gulf frozen goods trading center will also be opened in the future. In the future, the Beibu Gulf frozen goods trading center will also be opened. In the future, the Beibu Gulf frozen goods trading center will also be opened, while the logistics park is located on the border between China and Vietnam, and is the largest hub for trade in the ASEAN region and South China. Large-scale logistics park, which will be affected by the north The combined effects of the Gulf Free Trade Zone and the ASEAN Free Trade Zone; in the real estate sector, the company has development rights for multiple plots of land in Qinzhou, the core region of the Beibu Gulf, and plans to actively collaborate with mature developers in the future to advance development progress in due course. Profit forecast and valuation: Considering the company's gradual divestment of the mining business, the company's business will turn a loss into a profit this year; as the third batch of free trade zones is about to come out, the company's high-speed charging, logistics, real estate and other sectors are expected to take advantage of the policy trend; and the company's new business development direction is actually feasible. It is expected that in 2016-2018, EPS will be 0.07 yuan, 0.19 yuan, and 0.39 yuan respectively, covering and giving a “recommended” rating for the first time. Risk warning: Highway industry competition, railway competition, and the progress of the Beibu Gulf Free Trade Zone have fallen short of expectations.