Incident: The company announced that a strategic cooperation framework agreement was signed with the Pingtan Management Committee on May 29: The management committee welcomes the company to invest in bonded warehousing, logistics, import and export trade, e-commerce, tourism, finance, infrastructure and other related industries in the experimental zone. Comment: 1. We believe that this incident marks the fulfillment of the market's expectations for the company to fully participate in the development and construction of Pingtan Island. The company's long-term growth space has been opened up, and the growth path has begun to become clear. According to this strategic cooperation framework agreement, the company can implement projects in the future: 1) bonded warehousing and logistics park project: the management committee provides 500 acres of land, and the company carries out investment, construction, investment and operation management of the logistics park and supporting projects; 2) tourist park projects: introducing companies such as Hong Kong China Travel and Comfort to build a new type of tourism industrial park; 3) actively participating in the construction of infrastructure and municipal engineering projects in the Pingtan Comprehensive Experimental Zone. 2. Valuation concerns have been mitigated, and the company's asset size is expected to increase significantly in the future. Since the company is currently in a period of strategic transformation and project reserves are low, the market is generally worried that the company's market value is too large and the stock price is too expensive compared to the size of the company's assets. We believe that the signing of this framework agreement is expected to ease or dispel the capital market's concerns about the company's valuation, and the company's future asset size is expected to increase dramatically as the project is gradually implemented. 3. As the only A-share listed company participating in and leading the development of Pingtan, Pingtan Development's performance will also usher in explosive growth: we expect the first phase of Zhongfu Industrial Plaza to be pre-sold in July 2014 and capped in September, laying a solid foundation for high performance growth in 2015. 4. Maintain an increase in holdings rating, with a target price of 12 yuan. The company is the most direct beneficiary of the Pingtan concept. We predict that there is a high probability of a reversal of performance. We expect an EPS of 0.15/0.45 yuan in 2014-15. It is expected to greatly benefit from Pingtan Island development in the future. Refer to comparable company valuations in the free trade zone, and give a target price of 12 yuan. Risk Alerts: Project Acquisition Risk, Policy Risk, Sales Below Expectations