Summary of the report:

The company is a private real estate company, the proportion of major shareholders is low, and there is the possibility of mergers and acquisitions in the secondary market.

The continuous reduction of major shareholders and founding shareholders has come to an end, and the momentum for the long-term decline of share prices has weakened. Small and medium-sized real estate development companies, the development scale is not large.

After listing, the company has not raised capital from the capital market. Refinancing projects have been launched this year to invigorate inventory.

The company has a lot of money, but the company also has no short-term debt, and there are a large number of existing houses that can be sold in inventory, with an asset-liability ratio of only 34.5%. On the whole, the company has no short-term financial pressure.

Over the past four years, the company has continued to liquidate its inventory and reduce its debt, and now the company's inventory and deleveraging should be coming to an end.

Investment highlights: after 4 years of destocking and deleveraging and nearly 3 years of continuous reduction by original shareholders, the company has experienced the worst investment expectations. In the long run, the company's stock attractiveness will increase in the future.

It is estimated that the company's EPS per share in 2014, 2015 and 2016 will be 0.03 yuan, 0.04 yuan and 0.05 yuan. Considering that the deleveraging and destocking of the company are almost over, and the reduction of the original shareholders is also over, the company has the expectation of transformation and the potential possibility of mergers and acquisitions in the secondary market, covering the investment rating given to the company for the first time.