Events: The company announced its 2015 annual report, achieving revenue of 2,409 billion yuan, a year-on-year increase of 13.43% (previous value -10.99%); realized net profit attributable to shareholders of the parent company of 128 million yuan, an increase of 12.40% over the previous year (previous value of 9.07%); and earnings per share of 0.33 yuan, an increase of 13.79% over the previous year. Real estate+international engineering, and the dual main business are progressing steadily: the real estate business achieved revenue of 1,389 billion yuan in 2015, an increase of 13.43% over the previous year, and completed 106.85% of the annual plan; 20 new international project contract contracts totaled 1,974 billion yuan, achieved revenue of 925 million yuan, a year-on-year decrease of 23.43%; the profitability of the main business increased markedly, with an average ROE of 9.5% over last year, up 1.4pc from last year, to the highest level in recent years. Net sales interest rate rebounded to 5.4%, up 0.8% from last year. Acquisition of high-quality land storage and overseas real estate expansion: The total land area of the company's projects under construction and sale in the mainland is nearly 1.5 million square meters, and some of the projects have excellent geographical locations. Among them, the acquisition of 600 acres of land in Tongzhou by Beijing Wuyi, a wholly-owned subsidiary, will be the cornerstone of the company's future revenue and profit; at the same time, the company will continue to search for plots in central Nairobi, Kenya for overseas layout. Financial structure optimization and implementation of 1.1 billion allotments: The company's balance ratio is 86.2%, up 7.8pc from the same period last year, and the net debt ratio is as high as 368.7%. It can be seen that the company's financial pressure is huge; the company successfully allocates shares to raise 1.1 billion yuan, issue medium- and long-term corporate bonds to raise 490 million yuan, increase loans by 1,838 billion yuan in the current period, replace short-term loans with bonds or long-term loans, improve the financial structure, and reduce short-term debt repayment risk. Overseas business development, new opportunities for the Belt and Road: Currently, the company has 25 international contract projects under construction, with a cumulative contract amount of 4.497 billion yuan; in the future, the company will expand into real estate, trade, steel and other upstream and downstream businesses based on international engineering contracting business, driving the development of overseas investment, mergers and acquisitions, and foreign trade exports. Fujian's state-owned assets reform and business integration accelerated: The introduction of “Implementation Opinions on Deepening the Reform of State-owned Enterprises” promoted asset and business integration between the company and major shareholders; during the reporting period, Fujian Construction Engineering Group increased its holdings of the company by 3.4 million shares, and Fujian Energy Group, the second largest shareholder, increased its holdings by 0.81 million shares, which shows shareholders' confidence in the company's future operations. Investment suggestions: Fujian state-owned assets reform implementation opinions were introduced to promote business integration between the company and major shareholders; the acquisition of high-quality land storage, the Tongzhou 600-acre project pushes the company's real estate business to a new level, and overseas real estate expansion is imminent; international engineering contracts are developing steadily, and there is still room for expansion in the upstream and downstream industries; after allocating shares and bonds, the financial structure is clearly optimized. We expect the company's 2016-2018 EPS to be 0.31, 0.39, and 0.51. Corresponding to the current stock price, PE valuation is 52.0X, 41.3X, and 31.9X, maintaining a “buy-A” rating, and the target price for 6 months 19.9 yuan. Risk warning: Overseas contracts and exchange risks, and real estate inventory removal pressure in second- and third-tier cities is high.