Investment points: The Group's business scale is strong. The company is a subsidiary of Wanxiang Group. The group is the only auto parts company among the 120 pilot enterprise groups under the State Council and 520 key enterprises in the country. It is one of 16 companies with international competitiveness in China's entry into world famous brands. Wanxiang mainly manufactures and sells auto parts. Focus on Hangzhou and lay out the surrounding area. Shunfa Hengye has national-level real estate development qualifications, and its business area is concentrated in the Yangtze River Delta region, which has the most active economy and the most potential for development in China. Over the past 15 years, the company has developed and delivered a total of 2 million square meters of residential space. Currently, nearly 2 million square meters of housing are under construction, and 1 million square meters of planned housing is planned. The projects are mainly concentrated in Hangzhou, Tonglu, Nantong and Huainan. In terms of the share of equity construction area in reserve projects, Hangzhou, Huainan, Nantong, and Tonglu account for 59%, 31%, 6%, and 4% respectively. In terms of the regional value of reserve projects, Hangzhou, Nantong, Huainan, and Tonglu account for 50%, 23%, 19%, and 8% respectively. Overseas projects, new business highlights. Wanxiang American Real Estate Group, which is 100% controlled by the majority shareholders, currently has a certain scale in the US real estate development field. Since it was incorporated in the US in 2010, Wanxiang US has successfully invested in and developed 50 real estate projects in 15 US states; including 300 million US dollars in equity investment, and more than 2 billion US dollars in acquisition and development. The company's main managers have an average of more than 15 years of real estate investment and development experience. Currently, the listed company and Wanxiang US have jointly invested in Wanxiang 150 North Riverside Manager to participate in the construction of the 150 N. Riverside office building project in Chicago. By leveraging Wanxiang's resources, experience, and platforms to jointly invest with the US in real estate projects, it is conducive to the expansion of overseas business of listed companies. In 2015, the total amount of real estate projects the company plans to jointly invest in with Wanxiang US will not exceed RMB 2 billion. Hangzhou G20 Concept Stock: In 2016, Hangzhou will host the G20 World Summit. The full name of the G20 World Summit is the “Meeting of Finance Ministers and Central Bank Governors of the Twenty Countries.” At that time, the top leaders of all countries will also attend. The main venue for hosting the G20 summit will undoubtedly attract the attention of the world. From the perspective of current planning, the Hangzhou G20 sector may include the three major regions of Qianjiang Century City, Xiaoshan City, and the Olympic Sports Division. Currently, all of Shunfa's major projects in the Hangzhou region are concentrated in the above three regions. The company is one of the A-share real estate companies with the highest market value ratio in the G20 sector. Investment advice: Give an “excess” rating. The company's 2015 and 2016 EPS are expected to be 0.59 and 0.72 yuan, respectively. Based on the company's stock price of 10.12 yuan on December 3, the corresponding PE for 2015 and 2016 is 17.15 times and 14.06 times. The company was given a price-earnings ratio of 18 times in 2016, corresponding to a stock price of 12.97 yuan. For the first time, the company was given an “increase in holdings” rating. Risk warning: Price increases trigger regulatory risks.