Incident 1: The company announced its 2013 annual report. During the reporting period, the company achieved operating income of 7.061 billion yuan, a slight decrease of 3.34% over the previous year; net profit attributable to shareholders of listed companies was 545 million yuan, an increase of 23.56% over the previous year; and realized basic earnings per share of 0.54 yuan. The company's dividend plan is to distribute a cash dividend of 1.5 yuan (tax included) for every 10 shares. Investment advice: The company is the only listed company that develops the free trade zone. Under Premier ****'s “opening-up forces reforms”, Waigaoqiao and even stock companies will become important strategic core platform companies in the world. At present, the construction of a free trade zone has been upgraded to a national strategy, and the company's waigaoqiao fundamentals will enter a stage of disruptive reversal. In the future, the company will focus on developing the first phase of the free trade zone project, including the port area, logistics area, and Sunland Middle Zone and South Block international communities to achieve “industry-city integration”. Among them, the Sunland project is 1.3 million square meters (788,800 square meters has been launched so far), which is expected to bring rich returns to the company. We expect the company's EPS for 2014 and 2015 to be 0.60 and 0.74 yuan, respectively. Comparing the revaluation of factors of production under the Hong Kong free port policy, we expect that in the future, the value of the company's assets will significantly benefit from the progress of the Pilot Free Trade Zone and be benefited from the five major benefits of policy dividends, industrial upgrading, land price revaluation, positioning changes, and functional upgrades. Without considering this factor, the company's RNAV is 28.24 yuan. As of April 29, the company closed at 26.74 yuan, corresponding to 2014 and 2015 PE of 44.44 times and 36.29 times, respectively. Considering that the Sunland project has entered the peak of development, Waigaoqiao will benefit from the construction of the Pilot Free Trade Zone, and targeted financing will accelerate the construction of the company's five major platforms. We use RNAV, or 28.24 yuan, as our target price for six months to maintain the “increase in holdings” rating.