Event: The company announced its 2016 earnings report. In the reporting period, the company achieved operating income of 984 million yuan, an increase of 16.65% over the same period last year; realized operating profit of 56.76 million yuan, an increase of 5.02% over the previous year; realized net profit attributable to owners of the parent company was 36.1356 million yuan, an increase of 252.60% over the same period last year; and basic earnings per share was 0.196 yuan, up 250.00% from the same period last year. Conclusion: The company's main business is in a period of rapid growth and the company has a state-owned enterprise reform theme, giving the company a “buy” investment rating. Text: 1. Performance has maintained high growth. According to the 2016 performance report released by the company, it can be calculated that the operating profit margin declined significantly in the fourth quarter. After deducting the impact of the company's impairment losses in 2016, the operating profit margin for the fourth quarter was still below the average for the quarter. During the reporting period, the company's net profit growth rate reached 252%, which remained at a high level. 2. The theme of high growth and state-owned enterprise reform. We are optimistic about the company's growth prospects. 1) Ongoing orders are full, and future performance is supported; 2) The company is the only listed company under the Cloud Investment Group and has expectations of state-owned enterprise reform. At the same time, the group's strong support will accelerate the pace of the company's extended development; 3) The company's revenue has reached 1 billion dollars. Compared with listed companies in the landscaping industry, the company's market value is relatively small. 3. Profit forecasting and investment advice. We expect the EPS for 16/17 to be 0.20 yuan and 0.39 yuan respectively, considering that the majority shareholder of the company's state-owned enterprise background will greatly enhance the core competitiveness of the company's landscaping construction business. Maintain the company's “buy” investment rating.