Investment highlights: events. The company announced its 2017 quarterly report. During the reporting period, the company achieved operating income of 3.04 billion yuan, an increase of 17.8% over the previous year; net profit attributable to shareholders of listed companies of 298 million yuan, an increase of 62.2% over the previous year; and realized basic earnings per share of 0.09 yuan. In the first quarter of 2017, the company's revenue increased by 17.8%, driven by an increase in carry-over; driven by a decrease in the level of taxes and fees, the company's net profit increased to 62.2%. In the first quarter of 2017, in terms of real estate development, the company achieved a total construction area of 264,900 square meters of land reserves (planned construction area of 196,000 square meters), a total construction area of 129,800 square meters of equity land reserves, a year-on-year decrease of 11.40% and a decrease of 56.60%, respectively; in terms of engineering construction, the company achieved a new construction area of 373,100 square meters, a year-on-year decrease of 14.3%, a year-on-year decrease of 25.3 million square meters, and a resumption of work area of 3,80.40 million square meters, respectively; in projects In terms of sales, the company achieved a contract area of 267,900 square meters, a contract amount of 5.112 billion yuan, an increase of 19.90% and 114.50% respectively over the previous year, a settlement area of 208 million square meters, and a settlement amount of 2,411 billion yuan, up 29.60% and 23.90%, respectively. From January to January 2017, in terms of owned properties, the conference center business format had a total construction area of 326,400 square meters, achieving total operating income of 141.98 million yuan; the office building business type, the total construction area of the project was 365,000 square meters, achieving total operating income of 176.19 million yuan; the hotel industry, the total construction area of the project was 292,200 square meters, achieving total operating income of 165.96 million yuan; the apartment industry, the total construction area of the project reached 52.9 million yuan; Wan Ping achieved a total operating income of 59.32 million yuan. In 2017, the company plans to develop properties with an estimated new construction area of 2.57 million square meters, a resumed construction area of 6.02 million square meters, and a completed area of 1.37 million square meters. In 2017, the company strives to achieve sales of 1.25 million square meters and signed contracts (including parking spaces) of 20 billion yuan. Investment advice. Expand upstream into the convention and exhibition industry, strengthen development momentum, and maintain a “buy” rating. The company's projects focus on Beijing and Changsha, and are involved in development, commercial and investment properties. The revaluation of the company's projects in Beijing benefited from the “Beijing Cultural and Creative Plan”, with an accumulated value of about 37.8 billion yuan. The company is a leader in the exhibition business in the country and is transforming into an upstream high-profit business. We expect the company's 2017-2018 EPS to be 0.22 yuan and 0.30 yuan respectively, and the corresponding RNAV is 10.38 yuan. The company's stock price/RNAV discount rate is generally the lowest among listed commercial real estate companies. Furthermore, Beijing's bid to host the Winter Olympics has now been successful. Considering the company's important performance in the Asian Games and Olympics, we expect that Beichen Industrial will probably continue to participate in related work. Considering that on the basis of business development, the company focuses on developing innovative businesses such as “Exhibition+Internet,” the health care industry, and cultural and creative industries, etc., the company was given a 10% discount on RNAV, or 9.34 yuan, as the company's target price for the next 6 months to maintain the “buy” rating. Risk warning: The industry faces two major risks: interest rate hikes and policy regulation.