Sanxiang Impression (000863.CH/RMB 7.33, buy) announced on May 11 that Huang Hui, the chairman and actual controller of the company, increased his holdings by 500,000 shares through auction transactions on the same day, increasing his holdings at an average price of 7.256 yuan/share, increasing his holdings by 3.6282 million yuan. According to the previous holdings increase plan, 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 no more than 2 million shares, not more than 27.66 million shares. We believe that the actual controller has once again increased its holdings this time as promised in yesterday's holdings increase plan, and according to the plan, it is hoped that it will continue to increase its holdings in the future. The increase in holdings by company executives for two consecutive days highlights management's confidence in the company's “culture+real estate” strategy and affirmation of the company's current value. We believe that the company's high-quality assets are significantly underestimated, and that a steady rebound in the market will usher in room for the company's valuation repair in the future. We reaffirm the company's buying rating and suggest a layout on dips. The incident, Sanxiang Impression, announced on May 11 that Huang Hui, the chairman and actual controller of the company, increased his holdings by 500,000 shares through an auction transaction on the same day, increasing his holdings by an average price of 7.256 yuan/share, and an increase of 3,6282 million yuan. According to the previous holdings increase plan, 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 no more than 2 million shares, not more than 27.66 million shares. Comment 1. Actual controllers and executives once again increased their holdings, highlighting the value of investment. 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. The total increase in holdings of 890,000 shares cost 6.28 million yuan. On May 11, Huang Hui, the actual controller and chairman, once again increased his holdings by 500,000 shares. The average price of the increase was 7.26 yuan/share, that is, a cumulative increase of 1.22 million shares and an investment of 8.7 million yuan. Furthermore, the actual controller plans to increase its 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, so it is expected that holdings will increase again in the future according to the plan. 2. The margin of asset safety is high, and there is room for excessive decline and repair. The impression that the company completed the acquisition last year is that it is a leader in culture and performing arts in China, with annual box office revenue of 1.1 billion yuan for more than 10 shows in major scenic spots across the country. As the stock price of Song Cheng, the industry leader, stabilizes, we believe that the stock prices of companies that are highly relevant to the growth sector will also usher in a lot of room for rebound. 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 due to the growth of cultural assets. 3. The valuation of cultural real estate is low, and the purchase rating is reiterated. We reaffirm the views of the recently released first in-depth report covering “Impressions of Sanxiang: Cultural Real Estate Jointly, Style Changes Welcome Opportunity”. The increase in holdings by company executives for two consecutive days highlights management's confidence in the company's “culture+real estate” strategy and affirmation of the company's current value. We believe that the company's high-quality assets are significantly undervalued, and that a steady rebound in the market will usher in room for the company's valuation repair in the future. We reaffirm the company's buying rating and continue to suggest a layout on dips.