Small giant, great wisdom: the company, formerly known as Huatong Tianxiang Group, changed its name after the completion of Tianjin Songjiang backdoor in 2009. The company's post-listing strategy gradually expanded from national expansion to shrinking to Tianjin. After reaching 3.3 billion of sales in 2010, the sales scale declined, while in 2016, driven by the national destocking policy, the company seized the opportunity to quickly digest the stock, and 2.35 billion achieved its best sales performance since 2010. Due to the contraction of sales in recent years and the high financial costs caused by refinancing restrictions, the company accelerated its strategic transformation in 2016, speeding up the settlement of projects on sale and disposing of its projects. Companies as small and medium-sized housing enterprises, to make diversification and breakthrough has been the trend of the times, the future use of major shareholders and platform advantages to seek new profit growth points and model innovation is an inevitable choice.

Accelerated diversification, the construction of real estate + smart city dual main business: the company began to explore the smart city in 2015, and signed the "Major Asset restructuring Framework Agreement" with Zhuolang Technology on February 6 this year. If this transaction is completed, Tianjin Songjiang will form a complete model of "real estate + smart city", strong layout of smart city areas, build new business growth points, and enhance the sustainable profitability of listed companies. At the same time, the counterparty promises Zhuo Lang's scientific and technological performance to fully guarantee the company's future performance. In terms of financial business, the company began to expand its financial leasing business in 2014 and set up Tianjin Hengtai Huijin Financial Leasing Co., Ltd. The layout of the industrial fund plate began in 15 years. At present, the total size of the company's industrial plate has reached 1.3 billion. In the future, the company's industrial fund is expected to provide a basis for companies to dock with emerging industries and create new growth points through the mode of industrial investment.

The continued increase of major shareholders shows confidence: since 2016, major shareholders of the company have continuously increased their holdings of the company, while on May 9, 2017, the company's controlling shareholders once again disclosed plans to increase their holdings. This increase does not set a price range. According to the fluctuation of the company's stock price and the overall trend of the capital market, the plan to increase holdings will be gradually implemented. At the same time, Binhai Holdings, the company's controlling shareholder, undertakes not to reduce its holdings of the company during the increase period and within 6 months after the completion of the above-mentioned increase plan. The active increase of the controlling shareholders fully demonstrates the shareholders' confidence in the future development of the company and their optimism about the future prospects of the company. at the same time, the statement that the major shareholders increase their holdings without setting a price range also fully reflects the controlling shareholders' recognition of the current value of the company.

Profit forecast and investment rating: we expect EPS to be 0.31 and 0.10 yuan in 17 and 18, covering the "overweight" rating for the first time.