Investment points: The first coverage gave an “overweight” rating. The company is expected to benefit from the reform of the agricultural reclamation system. The Gansu Agricultural Reclamation Group is rich in assets, and there are expectations of injection. The company's EPS for 2015-17 is expected to be 0.18/0.24/0.3 yuan. Considering reforms and asset injection expectations, the company is given 35 times PE in 2016, with a target price of 8.4 yuan. It was covered for the first time, and a “accumulation of holdings” rating was given. The decline in agricultural product prices has dragged down the company's performance. In the first half of the year, the company achieved revenue of 891 million yuan (+5.1%), net profit of 87 million yuan (-23.08%), net profit after deduction of 11 million yuan (-89.3%). Non-recurring profit and loss mainly came from investment income. The comprehensive gross profit margin was 21.31% (-5.33pct), and the decline in agricultural product prices dragged down the company's gross profit margin. The period fee rate is 18.18% (+4.63pct). In the second quarter, the company achieved revenue of 459 million yuan (+29.3%), net profit of 58 million yuan, net profit of 58 million yuan, and a loss of about 100 million yuan after deducting investment income. The performance was slightly lower than expected. Strive to improve planting efficiency. The company takes “building a large base to form a big industry” as its strategic idea, forming a new pattern of “7+1" industry, and improving planting efficiency by adjusting the structure of planting products, crop rotation, etc. The company is focusing on promoting water-saving drip irrigation technology, expanding centralized and unified business area, and adopting the “company manages two heads+family farms, farmers are responsible for planting” model to improve the large-scale efficiency of agricultural production. The Group is rich in land resources, and there are expectations of asset injection. Agricultural reclamation in Gansu has a total land resource area of about 8.1 million mu. Currently, there are 4.15 million mu of listed companies, accounting for 51%. There are future integration expectations. Risk Warning: The progress of agricultural reclamation reform falls short of expectations, risk of natural disasters