Key investment events: China Electric Power Construction Group Co., Ltd., the actual controller of the company, has received the State Council's State-owned Assets Supervision and Administration Commission's “Approval on Issues Related to the Non-Public Offering of Shares by Wuhan Nanguo Real Estate Co., Ltd.” The State Council's State-owned Assets Administration Commission agreed in principle to the company's non-public share offering plan and agreed that China Power Construction Real Estate Group Co., Ltd. would subscribe to some of the shares in this non-public offering with no more than 620 million yuan in cash. Approved by the State Assets Administration Commission, the non-public offering of shares is progressing smoothly. With no less than 5.64 yuan/share and no more than 275 million shares, the fixed increase company plans to raise 1.55 billion yuan for the development of four real estate projects: Nanguo Center Phase I, Tanhualin, Xiongchu Plaza, and Nanguo Center Phase II. The controlling shareholder, Dianjian Real Estate Group, plans to subscribe for no more than 620 million yuan, accounting for 40% of this fixed increase in capital raising, which is comparable to the current shareholding ratio of the majority shareholders. This fixed increase was approved in principle by the State Assets Administration Commission, and subsequent companies will continue to advance. Through this issuance, the company will be encouraged to improve asset quality, optimize capital structure, and further enhance its sustainable profitability. The majority shareholders have strong strength and are rich in stock asset development and property management resources. In 2014, China Power Construction Real Estate Group had sales of 20 billion yuan, total assets of nearly 65 billion yuan, and strong capital strength, which will provide strong support to listed companies. The combination of Dengjian Real Estate and Nanguo Real Estate effectively combines the real estate capital and resource advantages of central enterprises with the professional ability and team of Nanguo Real Estate in commercial real estate development and operation. As of 2014, Dianjian Real Estate Group has 49 development projects, and has a large number of industrial plants and many employee residential areas in the core areas of many Tier 1 and 2 cities; at the same time, the Electric Construction Industry, which is owned by the majority shareholder, already has a management area of more than 4 million square meters. The projects it manages cover many regions, and has rich experience in property management. In the future, the company will accelerate the pace of collaboration with Dengjian Real Estate regional companies in various cities, and there is huge room for imagination in community O2O and asset-light operations in the future. Investment proposal: The company's non-public offering of shares has been approved by the State Assets Administration Commission and is progressing smoothly. Power Construction Real Estate Group will help the company in terms of personnel capital, stock asset development, and property management. At the same time, the company is also undergoing an asset-light transformation to a commercial property post-service industry. Combined with the company's refined operations, there is huge room for future growth. We expect the company's 2015-2017 EPS to be 0.48, 0.71, and 0.97 yuan, respectively, corresponding to PE of 23.8, 16.1, and 11.8 times, respectively, maintaining a “buy” rating. Risk warning: The recovery in industry transactions was lower than expected.