Investment Essentials 1. The large increase in holdings of the controlling shareholder shows strong confidence in the company. The large increase in holdings of the controlling shareholder Mr. He Qinghua shows that he has full confidence in the company's future development prospects and full recognition of the company's value. Furthermore, Mr. He Qinghua has promised to subscribe for 20.00% of the number of non-public shares issued by Shanhe Intelligence in 2015, so the possibility of continuing to increase his equity shares in Shanhe Intelligence over the next 12 months is not ruled out. 2. The settlement of 60% of AVMAX's shares has been completed, and the improved layout benefited from the General Aviation Open Company's acquisition of 100% of the shares of the Canadian regional aircraft leasing and maintenance company AVMAX with 1,979 billion yuan. Currently, the company has completed 60% of the equity settlement. AVMAX's business includes aircraft leasing, aircraft maintenance, aircraft spare parts and used aircraft sales, etc., and achieved net profit of about 136 million yuan in 2015, and will significantly increase the company's performance after the announcement. The company has formed a whole industry chain of general aviation aircraft manufacturing, aero engine development, aircraft operation and leasing, and aircraft maintenance. With a complete layout, the company will continue to benefit from the liberalization of general aviation. 3. The PPP model has entered underground engineering development, and there are plenty of opportunities in the field of rail transit and pipe gallery construction. China Railway Shanhe, a joint venture subsidiary of the company, actively participated in urban underground engineering development projects such as the PPP model, government investment, and owner investment, focusing on underground engineering projects such as rail transit, integrated pipe galleries, and sponge city construction. Rail transit and underground pipe corridors are key areas of PPP implementation. Among them, rail transit is the industry segment with the second largest investment volume in inbound PPP projects in China, with a total investment of 1.04 trillion yuan. 2016-2017 will be the peak period for subway traffic, and the annual mileage growth rate will exceed 30%. The investment amount for underground pipe galleries has reached 425.2 billion yuan. Of these, by the end of 2020, Hunan Province will strive to build 500 kilometers of underground integrated pipe galleries, gradually increasing the proportion of underground integrated pipe galleries built on urban roads. Using the PPP model, joint ventures will better integrate capital resources and government resources, bringing a large number of opportunities to the company. 4. The profit forecast predicts that the company will achieve net profit of 87 million, 239 million, and 298 million yuan attributable to the parent company in 16-18, corresponding to EPS of 0.09, 0.25, and 0.31 yuan, and corresponding PE of 110X, 40X, and 32X, maintaining recommended ratings. 5. Risk indicates that business development falls short of expectations.