Incident: The 60th meeting of the Issuance Review Committee of the China Securities Regulatory Commission in 2013 reviewed and approved Chengdu Road and Bridge's public issuance application. Chengdu Road and Bridge now plans to publicly issue no more than 130 million shares, raising no more than 110,000 million yuan in total capital. The capital raised will be used to invest 700 million yuan in the following two projects: the Yuanhua Road South Extension (Section C) investment and financing construction project of 700 million yuan and the supplementary operating capital project of 400 million yuan. Comment: The capital strength is expected to improve rapidly. The company's new issuance plan was officially proposed at the end of November 2012 and approved by the Securities Regulatory Commission in June 2013. It is expected to be implemented in the third quarter. Faster than our previous expectations, the company's capital strength is expected to increase rapidly, and the signing of new orders will accelerate in the second half of the year. It is planned that all of the capital raised this time will be used to invest in BT projects and supplement operating capital. Before the capital raised this time is in place, the company has invested first with self-raised capital, and will replace it after the capital raised is ready. The investment income of related projects will be reflected in 2013. BT projects enhance the company's profitability. The BT model, or building-handover model, is a more commonly used franchise model for infrastructure projects in China. The company began testing BT projects in 2004, and after going public at the end of 2011, the company increased its expansion of BT projects. More than 80% of the new orders signed in 2012 were BT projects. Through a model that organically combines construction management and capital management, the company is gradually becoming an urban infrastructure operator integrating project investment, construction and management, and future profitability is expected to further improve. Maintain a buy-B investment rating with a target price of 13 yuan. The progress of the company's increase was faster than expected. We raised our previous profit forecast. After the public increase, the company's main revenue growth rates in 2013-2015 will be 23%, 30.9%, and 28.6%, respectively, and the net profit growth rates will be 50.2%, 42.8%, and 30.1%, respectively. Maintain the buy-B investment rating, with a target price of 13 yuan for 6 months, corresponding to 14.8 times the dynamic PE of 2013 (assuming an additional 110 million shares at a price of 10 yuan per share). Risk warning: business area concentration risk, BT project repurchase risk.