Event: the company released the 2016 China report that in the first half of the year, the company achieved operating income of 1.164 billion yuan, an increase of 360.77% over the same period last year, and a net profit of 70.1037 million yuan, an increase of 467.83% over the same period last year.

Comments: the company's business is mainly distributed in Hefei. In the first half of 2016, the real estate market in Hefei is eye-catching, with housing prices and sales growth leading the national market. The company's performance year-on-year turnround is mainly due to the carry-over income of amber fifth ring city, Accord and other projects, while the company did not carry forward development projects in the same period last year, resulting in a substantial increase in interim performance compared with the same period last year. As of the first half of the year, the amount received by the company in advance increased to 2.86 billion yuan, up 25.54% from the same period last year, which played a supporting role in the improvement of the company's annual performance.

The company is not only the only listing platform under its major shareholder Xingtai Holdings, but also the local financial holding platform for state-owned enterprises in Hefei. Xingtai holding business covers banking, trust, insurance, funds and other financial fields, and is also one of the indirect shareholders of Ant Financial Services Group, which will form multi-faceted financial support to the company. The company's equity scale is moderate, which is convenient for the injection of high-quality resources, and has a unique advantage in resource integration. The company's equity transfer is expected to improve.

Profit forecast: the company's current project reserves are sufficient, there will be amber five-ring city, amber city and other three projects will be settled one after another, which will form a strong support for the performance. It is estimated that the company's EPS from 2016 to 2018 will be 0.55,0.66 and 0.81 yuan respectively, with a "overweight" rating.

Risk tips: 1) the risk of sales in the real estate market falling short of expectations; 2) the risk of real estate-related policy changes.