Events:

According to the 2015 annual report released by Caixin Development, the company achieved revenue of 668 million yuan in 2015, an increase of 12.10% over the same period last year, and a net profit of 83.8773 million yuan, an increase of 12.51% over the same period last year.

Comments:

The performance is in line with expectations and the performance is released smoothly. In 2015, the company achieved revenue of 668 million yuan, an increase of 12.10% over the same period last year, and a net profit of 83.8773 million yuan, an increase of 12.51% over the same period last year, mainly due to the completion and acceptance of the 10-1 building in the eastern part of the north bank Jiangshan project. In 2015, the company signed a sales area of 1701 million square meters, mainly the north bank Jiangshan project and Haitang international project. Among them, the signed sales area of the north bank Jiangshan project is extremely 1.180 million square meters, with a contracted sales amount of 833 million yuan, and the signed sales area of the Haitang international project is extremely 521 million square meters, with a contracted sales amount of 342 million yuan. The company's main settlement project in 2015 is the North Bank Jiangshan project, which was acquired earlier, with a land cost of only 251 yuan per square meter and a high overall settlement gross profit margin of 939 thousand square meters in 2015. We expect that with the continued settlement of the North Bank Jiangshan project, the company's performance will be accelerated in the future. The company acquired two new real estate projects in 2015, namely Caixin City and an industrial land in Weihai.

The asset structure has been significantly optimized and the amount of accounts received in advance has increased significantly. In September 2015, the company's non-public stock offering program was successfully implemented, and this additional offering actually raised 1.041 billion yuan, which enhanced the company's net assets and capital strength. At the end of 2015, the company's asset-liability ratio was 69.7%, down 12.9% from the same period last year; and the net debt ratio was 46.9%, down 105.4 percentage points from the same period last year. In 2015, the company achieved a net sales interest rate of 11.6%, a slight decrease of 0.7 percentage points compared with the same period last year, and the level of net interest rate decreased slightly, mainly affected by the structure of settlement products. By the end of 2015, the company received 1.31 billion yuan in advance, much higher than the 820 million yuan level at the end of the 14th year, laying a good foundation for the future performance of the company.

Investment advice: the company's 2015 performance is in line with expectations and released smoothly. We are optimistic about the support of major shareholders to listed companies. It is estimated that the company's 2016 EPS in 2018 will be 0.47,0.55 and 0.65 yuan respectively, and the corresponding PE will be 134.9, 115.3 and 97.6 times respectively, maintaining a "buy" rating.

Risk hint: future sales fall short of expectations.