Light, the transformation demand is clear: Tianchen shares is a listed company whose main business is real estate development and operation, property investment, taxi operation and equity investment. Due to the lack of land reserves and funds, the main industry has basically stagnated since 2011, and the search for core industries and competitiveness has become a problem that needs to be solved. The company's equity investment has increased in recent years, and the Ruiyi medicine invested has been listed on the new third board. In April 2015, the board of directors approved the establishment of a new investment management department and launched a major asset restructuring on September 1, 2015. Although the final restructuring was not successful, it also highlighted the urgent demand for the company's strategic transformation. By the end of the third quarter, the company had 395 million cash on hand, no interest-bearing liabilities, an asset-liability ratio of only 22%, and a good transformation potential. The six-month commitment not to restructure is expected to be lifted in June. We still look forward to the company's next new transformation and expansion.

The change of management team injected new vitality: in November 2015, the company hired Tianan Chinese executive Zhang Zhenban as the new general manager, and brought in the management staff of the investment management department to add fresh blood to the company. We believe that the update of the management team is expected to accelerate the company's two key directions: the relevant construction teams are gradually improving, which will help to invigorate the company's stock resources. the new team internationalization perspective is also expected to introduce cooperative resources from different organizations for the project. On the other hand, the establishment and personnel improvement of the company's investment management department will also bring resources for the company's future transformation and look for new profit growth points.

The core resources are waiting for revaluation to build a double security margin: the company's core resources include Minhang District and Greenland holding shares, with a total value of about 8 billion, without considering Ruiyi technology and other assets. it has supported the current market value of the company, and the ban on Greenland equity is expected to be lifted in July, providing potential cash support for the company's future transformation and upgrading. In addition, the company was awarded a license by Guohua Life Insurance from July to August 2015, accumulatively increasing its stake in the company by 15%. Since then, major shareholders have continued to increase their holdings since July. According to our estimation, the increasing prices of both sides are near the current price, providing a margin of safety for the company's current price.

Profit forecast and investment rating: we expect the company's EPS for 15-16 years to be 0.14 yuan and 0.17 yuan respectively, covering the "overweight" rating for the first time.