Xiong'an New Area promotes business growth+Huachuang's high growth advantage. It is expected that this year's performance will significantly improve the company's net profit of 142 million yuan, -163% over the same period last year, and achieve operating income of 1.12 billion yuan, +220% year-on-year. In 2016, Huacheng Securities achieved net profit of 410 million yuan, -41% year-on-year; revenue of 1.96 billion yuan, -18% year-on-year. Since September 2016, Huacheng Securities has been included in the scope of the company's consolidated statements. After the fixed capital increase is in place, Huachuang's net assets are 11.16 billion yuan, +226% over the same period, which will greatly open up the business space of Huacheng Securities and have high growth potential in the future. At the same time, benefiting from the construction of Xiong'an New Area, the company's traditional building materials business is expected to usher in a new round of growth, and this year's performance is expected to improve markedly. The brokerage market share has been steadily increasing, and the scale of bond financing has increased dramatically. Huacheng Securities is a brokerage firm with flexible industry mechanisms and obvious characteristics. The brokerage business has keenly deployed Internet finance, vigorously developed and built a comprehensive Internet financial service platform, and accumulated a good “Internet+Finance” model. In 2016, the stock market volume was 70.6 billion yuan, and the market share was 0.25%, up slightly from 0.24% in 2015. Huacheng Securities completed 6 equity underwriting projects throughout the year, including 5 additional projects. The shareholder underwriting amount was 5.4 billion yuan, +20% over the same period last year. The scale of bond underwriting has increased dramatically. A total of 53 underwriting projects have been completed, with a main underwriting amount of 18.1 billion yuan, a significant increase of 419% over the previous year. The company established an investment banking business team in 2012, completed the first IPO project in 2016, and is currently reviewing 15 IPO projects. It is expected that the investment performance will maintain high growth this year. There is a lot of room for capital intermediation in the future. As of the end of 2016, Huachuang Liangfinance had a balance of 1,675 billion yuan, a market share of 0.18%, which is lower than the share of brokerage business. Mainly due to restrictions on the scale of net capital and limited business development, in the future, Huacheng Securities will make full use of listed companies' platforms to connect with the capital market, and is expected to further open up business space after supporting capital is in place, so there is great potential for future development. In 2016, the equity pledge business had a market value of 18.3 billion yuan, ranking 38th in the industry. Huacheng Securities's proprietary business is dominated by fixed income, and large fluctuations in the stock market in the short term have relatively little impact on the company's self-operating performance. After the supporting financing capital is put in place, about 3 billion yuan will be used for self-operated business development to enhance profitability. The asset management business developed steadily. As of the end of March 2017, 13 products had been issued, with a net asset value of 2.05 billion yuan. Infrastructure boom+real estate reserves. Baoshuo shares, the revenue target of Xiong'an New Area, are registered in Baoding, Hebei, and are directly benefiting from the construction of Xiong'an New Area. The company's traditional main business is plastic profiles and pipe fittings products. The business is concentrated in North China and East China. The first half of 2016 contributed more than 80% to the total revenue of the original main business. Benefiting from the infrastructure investment boom set off by the construction of Xiong'an New Area, the company's traditional main business is expected to usher in a new round of growth. Baoshuo Real Estate (40% shareholding), a subsidiary of Baoshuo Co., Ltd., won the right to use state-owned construction land in Baoding in 2013, with a total area of 267,000 square meters, including 255,000 square meters of residential land, land acquisition cost 4,024 yuan/square meter; commercial land cost 6,675 yuan/square meter. Benefiting from the construction of Xiong'an New Area, the company's real estate in Baoding has reserves and a lot of room for appreciation. Taking industry as the foundation, building industry and finance with the construction of Xiong'an New Area will open up new development space for Baoshuo's traditional business. At the same time, combining the investment and financing needs of agricultural customers, facility construction and other industries of New Hope Group, the company is expected to promote the connection between industrial capital, customer resources and financial resources through the development and innovation of financial products and services across institutions, markets, and fields, and form a unique industry-finance integration model. The 2017-2019 EPS is expected to be 0.36, 0.46, and 0.52, respectively, and the corresponding PE is 43, 34, and 30, respectively, maintaining the buying rating. Risk warning: Business development is not as good as expected, risk of market fluctuations.