Santaixiang Impression (000863.CH/RMB 7.10, buy) announced on May 10 that Huang Hui, the chairman and actual controller of the company, increased his holdings by 720,000 shares on May 10, to an average price of 7.06 yuan/share; Huang Hui plans to increase his holdings by no more than 9 yuan/share within 6 months from May 10, for a cumulative increase of not less than 2 million shares, not more than 27.66 million shares. We believe that this increase in holdings shows the company's management's confidence in the company's “culture+real estate” strategy, as well as its affirmation of the company's current value. As the valuation range of the culture and real estate sector enters a low level, the company's high-quality assets may usher in a good opportunity for valuation restoration. We reaffirm the company's purchase rating and recommend a layout on a discount. The incident, Sanxiang Impression, announced on May 10 that Huang Hui, the chairman and actual controller of the company, increased his holdings by 720,000 shares on May 10, to an average price of 7.06 yuan/share; Huang Hui plans to increase his holdings by no more than 9 yuan/share within 6 months from May 10, with a cumulative increase of not less than 2 million shares, not more than 27.66 million shares, including this increase in holdings. In addition, Xu Wenzhi, director and general manager of the company, increased his holdings by 120,000 shares on the same day, and Xu Yu, deputy general manager and secretary of the board of directors, increased his holdings by 50,000 shares. Comment 1. Executives have increased their confidence, and cultural real estate is making concerted efforts. Following significant market adjustments, on May 10, the company's chairman, general manager and deputy general manager increased their holdings by 720,000 shares, 120,000 shares and 50,000 shares respectively. The average price increases were 7.06 yuan/share, 7.08 yuan/share, and 7.10 yuan/share, respectively, increasing their holdings by 890,000 shares, with a total cost of 6.28 million yuan. In addition, the actual controller, Huang Hui, plans to increase his holdings by no more than 2 million shares and no more than 27.66 million shares (that is, no more than 2% of the company's total share capital) by no more than 9 yuan/share within 6 months from May 10. This increase in holdings highlights the company's management's confidence in the company's “culture+real estate” strategy and its affirmation of the company's current value. 2. The margin of asset safety is high, and there is room for excessive decline and repair. When the company completed acquisitions last year, the impression is that it is a leader in culture and performing arts in China. The annual box office revenue for more than 10 shows in major scenic spots across the country is 1.1 billion yuan, second only to Songcheng Performing Arts with 1.3 billion yuan in live performance box office, while the market value of the former, including real estate valuation, is only 1/3 of the latter. Although there is a big difference between the main business structure and profit model, Sanxiang's scarce asset value has also been significantly underestimated. On the other hand, Zhang Yimou and his creative team participated in the company's fixed price increase of 6.50 yuan/share last year and locked in for 3 years. Currently, the stock price is close to 7 yuan/share, so there is room for future valuation increases brought about by the growth of cultural assets. 3. The valuation of cultural real estate is low, and the purchase rating is reiterated. According to our first in-depth coverage report “Impressions of Sanxiang: Cultural Real Estate Strikes Together, Style Changes Welcome Opportunity”, the correlation coefficient between the company's stock price peaked in August 2015 and the media sector is 0.9, which is significantly higher than 0.55 in the real estate sector. The media, as a representative of the growth sector, has experienced continuous deep adjustments, ranking first in the industry in terms of year-to-date gains and losses. The company's current fund shareholding ratio is only 0.04%, ranking last among housing enterprises of the same size. As the valuation range of the cultural and real estate sector enters a low level, the company's high-quality assets may usher in a good opportunity for valuation restoration. We reaffirm the company's purchase rating and suggest a low-value arrangement.