The company is committed to becoming a “smart industry community developer and operator”. The listed company, formerly known as the Huangpu District Social Welfare Food and Tobacco Group, was founded in 1952. After 60 years of historical transformation, it continued to shift from the initial manufacturing industry to commercial real estate, and completed a complete exit from the manufacturing industry in 2014. In 2015, the company defined a strategy focusing on “integrated operators of smart industrial communities”. The real estate business accounts for a high proportion, and project reserves are concentrated in Shanghai and Suzhou. In 2015, the company achieved main business revenue of 321.5 million yuan, of which real estate business revenue was 279.61 million yuan, accounting for 87% of main revenue. The company has two land reserves, distributed in Qingpu and Songjiang, Shanghai, totaling 459821.70 square meters; 2 investment projects, located in Suzhou, Jiangsu, and Pudong, Shanghai, are currently under construction; all 3 projects on sale are located in Shanghai and are in the industrial office category and have not yet been pre-sold. Backed by Shanghai Yidian, it has extensive experience in smart city construction. Huaxin Co., Ltd. is the only real estate listing platform owned by Shanghai Yidian. The actual controller is the Shanghai State Assets Administration Commission. With the aim of “leading the development of the information industry and serving smart city construction”, Shanghai Yidian Group provides overall solutions for smart city construction, participates in the operation of smart cities, and has rich construction experience. It has been announced that competition issues in the industry will be resolved by 2017, pending asset injection. Huaxin Real Estate, the majority shareholder, promises: 1) Huaxin Real Estate and its subsidiaries will not participate in the bidding for projects where listed companies participate in the bidding; 2) until December 31, 2017, businesses related to peer competition will be gradually injected into the listed company in a market-based manner, making the listed company the only commercial real estate operation platform under Huaxin Real Estate. Build the first share in an A-share smart park. China's industrial park construction has entered a bottleneck period due to the shifting growth rate of China's economy and the difficult manufacturing industry. There is an urgent need to achieve transformation and upgrading through intelligent construction. Listed companies are committed to becoming integrated operators of the smart industry community and have innate advantages: they have a large reserve of commercial real estate projects, and at the shareholder level, Shanghai Yidian has a complete smart city architecture system, and has a number of high-end companies with powerful engines. In the future, the company is expected to form a synergistic effect with the majority shareholder industry in the smart industry and build the first share in the A-share smart park. Investment advice: In the future, the company is expected to become the first stock in the A-share Smart Park, giving it an “increase in holdings” rating. The company's transformation focuses on smart industry community operators, and the project layout is in the Yangtze River Delta region. It is expected that there will be synergy with the smart industry community of major shareholders in the future. The majority shareholders promised to resolve competition in the industry by 2017, and there are strong expectations that their related business will be injected into listed companies. We expect the company's 2016 and 2017 EPS to be 0.31 and 0.38 yuan respectively. As of July 28, the company's closing price is 11.58 yuan, corresponding to 2016 and 2017 PE of 37.35 times and 30.47 times, respectively. In 2016, the company was given 45XPE with a corresponding target price of 13.95 yuan, giving it an “increased holdings” rating. Risk warning: The progress of the company's smart park project fell short of expectations, majority shareholders resolved competition in the industry, and asset injection fell short of expectations.