Key investment events: Dongxing Securities announced its 2016 annual report and 2017 quarterly report. In 2016, we achieved total operating income of 3,573 billion yuan, a year-on-year decrease of -33.30%, and net profit attributable to shareholders of listed companies of 1,353 billion yuan, a year-on-year decrease of -33.81%. Total assets at the end of 2016 were 72,633 billion yuan, down -0.75% year on year; net assets attributable to shareholders of listed companies were 18.318 billion yuan, up 34.84% year on year. At the same time, it is proposed to distribute a cash dividend of 1.50 yuan (tax included) to all shareholders for every 10 shares. The company's revenue for the first quarter of 2017 was 721 million yuan, up 6.79% year on year, down -36.65% month on month; net profit was 302 million yuan, up 8.46% year on year, up 18.17% month on month. When the brokerage business is upgraded and investment banks step in. The company relies on the “online+offline” brokerage business development model and ensures a steady upward trend in market share with a low commission rate level (around 35,000). At the same time, the company formally established the Internet Finance Department to innovate products and services and build an Internet financial system. In terms of investment banking business, the scale of refinancing and bond underwriting increased markedly in 2016. At the same time, IPOs began to be released at the end of 2016 at an accelerated pace. The company has abundant reserves of equity underwriting projects, and the investment banking business is continuing to gain strength. The scale of group collaboration has increased dramatically, and its strategic position has continued to improve. The synergy between the company and major shareholders continues to deepen, and many businesses such as investment banking, asset management, and investment have clearly benefited. In 2016, the scale of collaborative projects between the two sides exceeded 100 billion yuan, and total revenue increased 243.77% year on year. At the same time, China Oriental, the majority shareholder, has completed the shareholding system reform, and the company, as the only listed financial platform under Oriental China, has an important strategic position within the group, and its position is constantly improving. The development support brought by the Group will lay a solid foundation for the development of various businesses. Valuation and ratings: As the only listed brokerage firm owned by the four major asset companies, the company has abundant resources. At the same time, the value of resources is still being explored and discovered, which will contribute to the steady growth of the company's performance. Assuming that the average daily trading volume of the brokerage business in 17-19 was 500 billion, 521.5 billion, and 547.6 billion, respectively, and the average daily balances of the two financial institutions were 1 trillion yuan, 1.1 trillion yuan, and 1.1 trillion yuan, respectively, the EPS for 2017, 2018, and 2019 is expected to be 0.55 yuan, 0.67 yuan, and 0.72 yuan respectively, maintaining their holdings increase ratings. Risk warning: The risk outbreak in the capital market has declined sharply, and the development of group business cooperation has not been as good as expected.