The Ganyue Expressway released its 2016 annual report. In 2016, the company achieved operating income of 4,555 billion yuan (-17.2%), gross margin increased to 37.62% (+7.4pct), net profit attributable to the parent company of 1,037 billion yuan (+45.69%), EPS of 0.44 yuan, and plans to distribute cash dividends of 0.15 yuan per share (tax included). The equity holdings participated in major asset restructuring, resulting in an increase in net profit attributable to the company. The company's operating income fell 17.2% year on year in 2016, mainly because in 2016, after the company transferred all of the shares in the engineering company, it was no longer included in the scope of the merger. Net profit attributable to the company rose 45.69% year on year to 1,037 million yuan. The main reason is that the company used its shares in Guosheng Securities to participate in the major asset restructuring of Huasheng Co., Ltd. successfully completed and successfully listed, contributing 547 million yuan in investment income to the company in the current period. Continued recovery in truck transportation boosted performance growth. According to the operating data of the company's official website, the company's truck traffic grew 8.23% year on year in 2016 (truck traffic growth rates in 2014 and 2015 were -2.2% and 5.5%). Among them, the growth rates of truck traffic in September-December were 4.6%, 8.3%, 19.6%, and 11.7%, respectively. There are obvious signs of truck recovery. In 2016, the country's road passenger traffic turnover fell 4.2% year on year, while freight turnover increased 5.6% year on year. Freight is expected to continue to grow in 2017. Ganyue and high-speed truck revenue accounts for a relatively high share, and is expected to continue to benefit. The company continues to develop new businesses on the basis of stabilizing its main business. In terms of tourism, the company continues to carry out fee-charging marketing work in conjunction with tourism plans in Jiangxi Province, and has introduced tourist routes in different seasons to increase the company's highway traffic, bringing the company's service area turnover to 122 million yuan, an increase of 20% over the previous year; in terms of financial investment, the company actively innovates financing methods to reduce financing costs, and strives to explore related investment opportunities. The company's participation in Guojin Guosheng Securities in 2016 brought the company an investment income of 547 million yuan. Investment suggestions: Consider that: 1) the continued recovery of truck transportation provides strong support for the company's performance growth; 2) the company continues to develop new businesses, revenue points are constantly increasing, and future profit prospects are promising. We expect the company's 2017-2018 EPS to be 0.35 yuan and 0.38 yuan respectively, giving it an “increase in holdings - A” rating, with a target price of 6.30 yuan for 6 months. Risk warning: A sharp decline in economic growth has led to a decline in truck revenue, etc.