This report is read as follows:

The company is a state-owned enterprise in Shenzhen, focusing on the electronic professional market, and strategic transformation of the Internet platform + supply chain finance. The acceleration of the reform of state-owned enterprises in Shenzhen is expected to improve the operating efficiency of the company and open up the space for medium-and long-term development through transformation. Main points of investment:

Investment advice: Shenzhen state-owned assets under the electronic professional market leader, state-owned enterprise reform is worth looking forward to, at the same time, the company's strategic transformation of the Internet platform + supply chain finance, open up medium-and long-term development space. The company is controlled by Shenzhen SASAC and operates 25 Saige electronic professional markets across the country. At present, the company actively develops the Internet platform, supply chain finance, and extends upstream and downstream along the industrial chain, laying a solid foundation for medium-and long-term development. We estimate that the company's EPS for 2015-2017 will be 0.07 pound 0.09 pound 0.12 yuan. With reference to the industry average valuation level, we will give the company PS25X with a target price of 36 yuan and a "overweight" rating for the first time.

The reform of state-owned enterprises in Shenzhen has been accelerated, and the change of the company is expected. The major shareholder of the company is the SASAC Seg Group, which focuses on the manufacturing of electronic components and has strong business cooperation with listed companies. The year 2015 marks the landing of the reform of state-owned enterprises, and the transition of the Shenzhen Municipal Government has been completed, which is expected to accelerate the reform. Asset integration, the introduction of war investment, and the realization of employee shareholding are important ways for the reform of local state-owned enterprises, through which the company is expected to straighten out the incentive mechanism, promote transformation and development, and improve business efficiency.

Strategic transformation Internet + Finance opens the space for medium-and long-term development, and saig navigation cuts into the entrance to the car network. The company has an operating area of more than 600,000 square meters in the national Saige electronics market, of which its own property is more than 160,000 square meters, with a conservative revaluation of 6.08 billion yuan. The company focuses on the three major businesses of Saige, Segatong and cross-border e-commerce, and actively develops the e-commerce platform to provide one-stop integrated service platform for small and medium-sized enterprises. At the same time, with the accumulation of tens of thousands of merchants in the electronic professional market for many years, the company set up a micro-loan company to actively develop supply chain finance business, and rapidly grew into one of the company's main sources of profit. In addition, the company also relies on the advantages of the group and signs a strategic cooperation agreement with Yi'an Science and Technology to extend upstream and downstream along the industrial chain. Take a stake of 12.5% in Seg Navigation, which is China's largest manufacturer of in-vehicle intelligent information terminals and automobile online service operator, will continue to benefit from the development of Internet cars, and is expected to list the new third board.

Risk tips: increased competition in the electronics industry; increased impact of e-commerce; lack of risk control of small loan business.