We have been deeply involved in Beijing for many years and have specialized in building high-tech industrial parks. Established in 1994, Electronic City is the main unit approved by the Beijing Municipal People's Government to implement the “Beijing Electronic City Development Implementation Plan”. It is also the implementation entity for the specific work of developing and constructing the Electronic City Science Park in Zhongguancun Science Park and attracting investment. The company went public in 2009 and has been deeply involved in the Jiuxianqiao High-tech Industrial Park in Beijing for many years since then. The company began to move from Beijing to the whole country with its own high-tech industry platform construction experience, investment promotion channels, and operation service team advantages. Currently, science and technology industrial parks are located in Beijing, Tianjin, Hebei, Shuozhou, Xiamen, and Kunming. The majority shareholders are rich in resources. As of April 2017, the largest shareholder and actual controller of the company was Beijing Electronics Holdings Co., Ltd., holding 45.49% of the shares. Electronic Control is a large state-owned high-tech enterprise group authorized by the Beijing Municipal State-owned Assets Administration Commission. It is a key investment holding company in the electronic information industry that was transformed from the Electronics Industry Office of the Beijing Municipal People's Government in 1997. Electronic Control has 18 second-tier enterprises and 6 public institutions, including 3 listed companies, including Electronic City. Electronic Control owns Hengtong Business Park, Zhaowei Industrial Park, and 798 Art Park in Jiuxianqiao. A fixed increase in financing for the development of new projects in 16 years. The company began planning a non-public offering of A shares at the end of 2015 to raise capital for project construction. Funding was completed in September '16. According to the “Private Stock Issuance Report” announced by the company, the company issued a total of 219 million shares and raised a total of 2.41 billion yuan in capital. The capital raised will mainly be used for the construction of the e-City Tianjin project and the Shuozhou project. In 2016, sales revenue was diversified, and profits were maintained. Revenue in 2016 was 1,516 billion yuan, down 16.36% year on year. The decline in revenue is mainly due to the fact that the company has increased its share of owned properties in the Beijing region, and the Waifu project is still in the cultivation period, thus affecting the company's overall revenue in stages. The company's gross margin in 2016 was 68.07%, higher than the company's five-year average of 66.21%. The company's overall profitability is relatively stable. The pre-collection amount of 70.29 million yuan in 2016 was 70.29 million yuan, an increase of more than 2 times over the previous year. Mainly due to the increase in pre-collected real estate purchases, some of the company's future performance was locked in ahead of schedule. Investment advice: “Overweight” ratings. The Beijing Master Plan (2016-2030) positions Chaoyang District as a center for international exchange. The company's Jiuxianqiao Industrial Park is located in the Chaoyang District office cluster area and is backed by the 798 Cultural Industrial Park. The asset value of the scarce area will gradually show. In addition, the company has sufficient reserves for construction projects in Tianjin, Hebei, Shuozhou, Xiamen and Kunming. As the projects are gradually completed, they can continue to provide the company with sales and rent growth. We forecast the company's 2017 EPS to be $0.67 per share. The company's closing price on April 21, 2017 was 13.78 yuan, corresponding to a price-earnings ratio of about 21 times in '17. We gave the company a price-earnings ratio of 25 times, with a target price of 16.75 yuan per share. Give it an “Overweight” rating. Risk warning: The company's real estate sales declined due to regulatory policies.