Investment highlights: Event: Company announcement 2017 semi-annual report. Net profit attributable to the parent company increased by 36% in the first half of 2017. In 2016, the company completed operating income of 5.488 billion yuan, a year-on-year decrease of 5.44%; net profit attributable to owners of listed companies was 462 million yuan, achieving earnings per share of 0.49 yuan, an increase of 35.96% over the previous year. The company's main business was changed, and low-margin businesses related to metals were removed. <公司章程>On October 19, 2016, the board of directors of the company deliberated and passed the “Proposal on Changing the Scope of Business and Amendments”. According to the latest announcement, the company removed the old metals and related low-profit businesses. This change will further strengthen the company's determination to transform. Real estate sales are expected to continue to grow in 2017. During the reporting period, due to the impact of the shipping cycle, the sales area and value of the real estate industry decreased year-on-year. However, as the company's sales volume gradually increased in the second half of the year, it is estimated that annual contract sales are expected to reach 12 billion yuan, maintaining a pattern of continuous growth over the past four years. The company is actively seeking business transformation. The company announced in October 2015 that it intends to jointly invest with its affiliate Wuhan Xinghui Investment Management Center (Limited Partnership) to establish a subsidiary, Fuxing Smart Home Property Service Co., Ltd., of which the company accounts for 51% and Xinghui Investment accounts for 49%. Among them, Fuxing Smart Home's business scope is property management, with registered capital of 500 million yuan. Among them, Fuxing Co., Ltd. invested 255 million yuan with its own and self-raised capital, accounting for 51% of registered capital; and Xinghui Investment invested 245 million yuan, accounting for 49% of registered capital. The registered capital of 500 million yuan also made Fuxing Smart Home Company directly the property company with the largest registered capital. At the same time, according to the latest “Notice on Accelerating the Development of Housing Rental Markets in Large and Medium Cities with Net Inflows” issued jointly by nine departments, the development of state-owned and private institutionalized and large-scale housing rental enterprises will be encouraged, and real estate development enterprises, brokerage agencies, and property service enterprises will be encouraged to set up subsidiaries to expand housing rental business. As an enterprise that is actively transforming in property management, the company is expected to benefit from support policies related to the leasing industry in the later stages. Investment advice: maintain a “buy” rating. The company's earnings per share for 2017 and 2018 are expected to be 0.85 and 1.05 yuan, respectively. As of July 31, the company closed at 12.33 yuan, corresponding to PE 14.51 times in 2017 and 11.74 times PE in 2018. The corresponding RNAV is expected to be 24.94 yuan. Considering the company's future growth, the company was given 23 times the PE in 2017, corresponding to the target price of 19.55 yuan, maintaining the “buy” rating. Risk warning. The recovery in industry fundamentals fell short of expectations.