Lujiazui's performance for the first half of the year was 0.26 yuan per share, up 30.8% year on year, Lujiazui achieved revenue of 3.79 billion yuan in the first half of the year, up 51.2% year on year; realized net profit of 880 million yuan, a combined profit of 0.26 yuan per share, up 30.8% year on year, slightly exceeding our expectations. Rental revenue continues to grow. The company achieved revenue of 3.79 billion yuan in the first half of the year, of which the leasing sector revenue was 1.3 billion yuan, an increase of 29.6% over the previous year. The average occupancy rate for grade A office buildings during the period was 98%, and the rental rate for R&D office buildings was 100%. The average rent was 7.15 and 4.97 yuan/square meter/day, respectively. The rent was slightly higher than 6.9 and 4.8 yuan/square meter/day in 2015. At the same time, the rental income of the Dongfanghui project recently put into use by the company will be mainly reflected in the second half of the year. We expect the company's annual rental income to increase by more than 30%. The real estate sales sector performed well. The company achieved a residential sales area of 75,000 square meters in the first half of the year, with sales of about 2.4 billion yuan. The removal rate of residential projects in Tianjin and Shanghai was over 90%. The company's real estate sales settlement for the first half of the year was 2.06 billion yuan, a sharp increase of 199.4% over the previous year. Among them, the Dongfanghui project transferred some commercial properties during the period, achieving revenue of 1.74 billion yuan and residential settlement revenue of 330 million yuan. The gross profit margin (before tax) of real estate sales during the period increased by 11 percentage points to 53.1% from 42.1% for the full year of 2015. The development trend is that rents are growing steadily, and the large financial sector continues to advance: in the first half of 2016, the company already owned 1.58 million square meters of properties under construction, and more than 2.6 million square meters. The newly put into use Dongfanghui will continue to contribute to rental income from the second half of this year. Furthermore, in May of this year, the company announced a major asset restructuring plan. It plans to acquire 100% of the shares of Shanghai Lujiazui Financial Development Company in cash. In the future, the company will obtain the three “securities+trust+insurance” financial licenses in one fell swoop, and fully launch the “real estate+finance” two-wheel drive strategy to achieve continuous and steady growth in the company's future performance. Profit forecast We raised the company's 2016 performance forecast by 6.9% to $0.61 per share, and raised the 2017 performance forecast by 0.8% to $0.63 per share. Valuation and recommendations The 2016/17 P/E corresponding to the current stock price of the company is 37.3 times and 36.0 times, with a premium of 62% over the latest net asset value. We maintain the target price of A shares of 25 yuan (45 yuan before exclusion) and the “neutral” rating, and maintain the “neutral” rating of B shares and the target price of 1.69 US dollars ($3.05 before exclusion). Risk Macroeconomic downside risk.