Investment suggestion: the company is a representative enterprise for the reform of state-owned enterprises in Shenzhen. The overall governance structure and mechanism of the group are expected to be greatly improved after listing, and the follow-up is expected to make a breakthrough in the aspects of incentive mechanism and the introduction of war investment. The proposed injection of 112000 square meters of property assets are located in the core business area of Huaqiang North, and the state-owned assets support reflects the support for the company's reform; the asset pricing and fixed increase reserve price are both 9.97 yuan per share, providing a strong margin of safety for the company's stock price. In the future, the company will shift from property rental to content operators, and has reached deep cooperation with leading companies such as BABA and e-sports. We are optimistic about the company's landing capability and transformation progress in the future. Considering the progress of the transformation, the forecast of EPS for 2016 / 2017 will be raised to 0.15 yuan for 0.12 yuan (originally 0.09 for 0.12 yuan), and 0.18 yuan will be given to 2018. Consider the downward shift of the valuation center of the industry, lower the target price to 20 yuan, and maintain the "overweight" rating.

The performance of the annual report exceeded expectations, and the overall listing of the group opened the curtain of reform. In 2015, net profit reached 10 million, an increase of 53.5% (the previous performance of KuaiBao was 22%), which significantly exceeded market expectations, equivalent to EPS0.095 yuan per share (up 85% after deducting Africa). It is proposed to inject into the group's high-quality assets at a price of 4.504 billion yuan per share, including 112000 Huaqiang North core business district property and foreign exchange platform. This plan will solve the problem of related competition of Seg Group, and further stabilize the position of major shareholders, including the improvement of incentive mechanism and the introduction of core investment.

Gorgeous turn around, from property rental to high-tech + experience content operation platform transformation. The company previously had an industrial background and dabbled deeply in the intelligent hardware industry chain. after the reorganization, we will actively create a multi-industry compound platform, including creator ecology, culture and education, intelligent technology, sports and entertainment, virtual experience, e-sports games, financial services and so on. The company has reached deep cooperation with Taobao China, Internet Fish Internet Cafe, Children's Cat Animation, Yi'an Science and Technology in omni-channel / e-sports games / animation / liquid metal consumer electronics and other fields, and has established a venture capital platform in the field of smart home and smart hardware. Be optimistic about the progress of the transformation and the future prospect of content operation after straightening out the mechanism.

Catalyst: reform of state-owned enterprises in Shenzhen is heating up; asset restructuring plan is approved