Investment highlights: events. The company published its 2016 annual report. During the reporting period, the company achieved operating income of 8.76 billion yuan, a year-on-year increase of 69.6%; net profit attributable to shareholders of listed companies was 840 million yuan, a sharp increase of 83.8% over the previous year; and basic earnings per share of 0.39 yuan (fully diluted earnings per share of 0.34 yuan). The company plans to distribute a cash dividend of 0.5 yuan (tax included) for every 10 shares to all shareholders. The company announced its 2017 quarterly report. During the reporting period, the company achieved operating income of 872 million yuan, a year-on-year decrease of 47.0%; net profit attributable to shareholders of listed companies was 278 million yuan, an increase of 90.1% over the previous year; and realized basic earnings per share of 0.11 yuan. In 2016, driven by a sharp increase in carry-over properties and the addition of mid-range leasing services, the company's revenue increased by 69.6%; during the same period, the company's net profit increased sharply by 83.8%. In the first quarter of 2017, the company's revenue decreased by 47.0% due to a decrease in carry-over; driven by an increase in investment income from participating companies, the company's net profit increased by 90.1%. In 2016, the company achieved a contract area of 1.1248 million square meters, an increase of 28.36% over the previous year, and a contract amount of 13.779 billion yuan, an increase of 100% over the previous year. In 2016, Mingcheng Financial Holdings Group already had a complete professional investment and research team to conduct in-depth research on big health, new energy, high-end manufacturing and other industries. The company used Kangsheng Investment, a subsidiary of Mingcheng Financial Holdings, as an investment platform, and managed assets of 3 billion yuan. In March 2016, the company jointly initiated the establishment of Huanghe Financial Insurance Company, which holds 14% of the shares. In April, the company, which holds 70% of the company's shares, listed on the New Third Board. In April, the company acquired 100% of the shares of Zhongcheng Leasing Company. In May, the company established Mingcheng International (Hong Kong) Co., Ltd. to create a platform for overseas investment. In May, the company cooperated to establish the 3 billion yuan Anxin Funds-China Merchants Bank-Tibet Kangsheng Dingzeng No. 1 Asset Management Plan. In September, the company participated in the subscription of Livzon Group to increase the number of shares by 14.9 million shares. In September, the company obtained 39,200 square meters of residential land in Nanjing. In November, the company obtained 51,300 square meters of residential land covering an area of 51,300 square meters in Changle, Fujian. In November, the company plans to take an indirect stake in Guorong Securities through Mingcheng Financial Holdings. In December, the company obtained 61,000 square meters of residential land covering an area of 61,000 square meters in Fuqing, Fujian. In March 2017, the company will build the first new energy industrial park in Taizhou. According to the company's 2016 annual report, in 2017, the company expects a new construction area of 1.33 million square meters and a completed area of 800,000 square meters this year; it plans to achieve an increase of no less than 20% in real estate sales over the previous year. Investment advice. The dual concept of the Fujian Free Trade Zone and the “Silk Road”, and the “two-wheel drive of industry and capital” is worth looking forward to. The company's development model is in line with the direction of new urbanization construction, and is an important target of the Fujian Free Trade Zone and the “Silk Road” theme. Sales in Daming City are expected to benefit from the tax and financial benefits associated with the Free Trade Zone. The East Lanzhou Science and Technology City project is located in the core area of the “Silk Road Economic Belt”. Currently, the company has clearly created a two-wheel drive for the real estate sector and the financial sector. The company clearly stated that it is actively exploring new industries such as financial services, investment and trade, warehousing and logistics, and big culture and health. We expect the company's 2017 and 2018 EPS to be 0.43 and 0.53 yuan, respectively, and the corresponding RNAV at 9.05 yuan. Considering the strong transformation of the company, we gave the company a PE valuation of 25 times that of 2017, or 10.8 yuan, as the target price for the next six months, to maintain the “buy” rating. Risk warning: The industry faces two major risks: interest rate hikes and policy regulation.