Incident: Gan-Yue Expressway (600269) released its 2016 annual report. The company's operation was steady, and its solvency was further enhanced. In 2016, the company achieved total operating income of 4,555 billion yuan, a decrease of 947 million yuan over the same period last year, a decrease of 17.21% over the same period of the previous year; net profit attributable to owners of the parent company was 1,037 million yuan, an increase of 325 million yuan over the same period last year, an increase of 45.69% over the same period last year. Among them, the company's main business traffic service revenue reached 3,036 billion yuan, a record high, an increase of 6.26% over the previous year. As of December 31, 2016, the company's total assets were 32,018 billion yuan, an increase of 959 million yuan over the beginning of the year; the company's total liabilities were 16.335 billion yuan, a decrease of 308 million yuan from the beginning of the year. The balance ratio was 51.02%, down 2.56 percent from the beginning of the year. The company's debt ratio and solvency are stable. The company decided to distribute a cash dividend of 1.50 yuan (tax included) to all shareholders for every 10 shares based on the total share capital of 2,335,407,014 shares as of December 31, 2016. The total amount of cash dividends distributed was 350,311,052 yuan. The diversification strategy first experienced success, and the first asset layout. In 2016, the company participated in the asset restructuring of Guosheng Securities (Guosheng Financial Holdings 002670), contributing 547 million yuan in investment income to the company in the current period. Currently, the company is in the suspension phase of major asset restructuring, and the Ganyue Expressway still holds 5.52% of its shares. At the same time, the company also holds 6.58% of the shares in Cinda Real Estate (600657) and 4.26% of the shares in Xiangyou Technology (600476). In 2016, the company invested 436 million yuan of its own capital to participate in Hengbang Insurance's capital increase and stock expansion, and held 20% of the shares to become its largest shareholder. Currently, the insurance company is doing well. The company also invested a total of 237.23 million yuan to hold 20% of the shares of China Power Investment Jiangxi Nuclear Power Co., Ltd. Relying on highway assets, companies trying to expand tourism have responded positively to the call for the construction of a “new type of urbanization” and carried out useful experiments on resource development and supporting services along expressways. >>The Lushan West Sea Scenic Tourism Project is located in Jinkou Town, Wuning County, Jiujiang City. The company plans to invest 400 million dollars to bid for 300 acres of construction land and handle 255 acres of land transfer matters to carry out follow-up development of the tourism project. The project is currently in progress. >>Tonggu Hot Spring Comprehensive Tourism Development Project is located in Wenquan Town, Tonggu County. The company announced in 2014 that it competed for 243.39 acres of commercial land at a price of 36 million yuan, and 194.14 acres of commercial land at a price of 34 million yuan. Traditional industries continue to be consolidated. The four-reform and eight-year expansion project for the Changjiu Expressway, which spun off infrastructure projects and concentrate on informatization projects, has begun. The total estimated project is 6.5 billion yuan. As of the end of 2016, a total investment of 540 million yuan has been made, and the next two years will be a key investment period. The highway has an excellent location and is expected to grow along with the Ganjiang New Area's national strategy, and is expected to continue to firmly occupy the company's highways asset position with the highest operating income over the next five years. Project revenue for this year's reporting period was 639 million yuan, a year-on-year decrease of 1,106 billion yuan, mainly due to the company transferring all of the shares in the engineering company and then not including it in the scope of the merger; this move highlights the company's ambition to concentrate on managing Fangxing's subsidiaries (100% holding, information technology engineering construction); in 2016, Fangxing completed revenue of 714 million yuan, an increase of 12.68% over the previous year, contributing 66.88 million yuan; the company is an information technology company based on transportation, which is expected to usher in a period of development opportunity with the construction of smart cities. Investment rating companies are diversifying their operations, and have huge potential for holding assets, with PB less than 1. The EPS for the next three years is expected to be 0.35, 0.38, and 0.42, and the corresponding PE is 15.6, 14.1, and 12.9 times, respectively. We are optimistic about the company's efforts in the diversification direction, and considering the implementation of the “Performance Reward Fund Incentive Plan”, we gave it an “increase in holdings” rating for the first time, with a target price of 5.9 yuan. Risks suggest that due to the economic downturn, road traffic falls short of expectations, tourism business expansion is blocked, and land development is facing resistance.