Events. In the first three quarters, the company achieved operating income of 1.32 billion yuan, down 69.8% from the same period last year; net profit belonging to shareholders of listed companies was 46.65 million yuan, down 69.7% from the same period last year; and basic earnings per share was 0.04 yuan.

In the first three quarters of 2016, due to the decline in real estate carry-over, the company's revenue fell by 69.8% and net profit fell by 69.7%. From January to September 2016, the completed area of the company was 44800 square meters. From January to September 2016: the company's contracted sales area of commercial housing was 99600 square meters, a decrease of 22.50% over the same period last year; the contracted sales of commercial housing was 1.229 billion yuan, a decrease of 39.53% over the same period last year. From January to September 2016, the company's rental income was 25.4614 million yuan.

According to the company's annual report, in 2016, the company plans to achieve 3 billion yuan in contracted sales of commercial housing (an increase of 10.9 percent over the same period last year), with a planned new construction area of 300000 square meters and a planned completion area of 360000 square meters.

Investment advice. Management is expected to improve higher, promote community Internet services, and maintain the "overweight" rating. The rights and interests of the company's commercial housing, indemnificatory apartment and first-level development projects are 2.48 million square meters and 1.36 million square meters respectively. 670000 square meters. In recent years, the company has accelerated the elimination of commercial housing; at the same time, the company has increased its stake in Huijin small loan Company to 90%, participated in Hebei Bank, and increased financial equity investment. Recently, the company has actively promoted the construction of community Internet service platform. We estimate that the EPS of the company in 2016 and 2017 is 0.13 yuan and 0.17 yuan respectively, and the corresponding RNAV is 9.3 yuan. The company's management has high expectations for improvement and actively promotes community Internet services. We give the company RNAV, or 9.3 yuan per share, as the target price to maintain the "overweight" rating.

Risk hint: the industry faces two major risks: interest rate hike and policy regulation.