The company announced its 2017 semi-annual report. During the reporting period, the company achieved operating income of 7.85 billion yuan, a year-on-year increase of 78.6%; net profit attributable to shareholders of listed companies was 623 million yuan, an increase of 57.3% over the previous year; and basic earnings per share of 0.19 yuan. In the first half of 2017, the company's revenue increased by 78.6% due to the increase in real estate carry-over; the company's net profit increased by 57.3% during the same period. From January to June 2017, the company achieved a new construction area of 890,000 square meters, a year-on-year decrease of 42.86%, a completed area of 490,000 square meters, a year-on-year increase of 14.02%, and a completed area of 490,000 square meters; in terms of project sales, the company achieved a contract area of 500,000 square meters, a contract amount of 9.3 billion yuan, a year-on-year decrease of 28.28% and 1.12%, respectively, a settlement area of 500,000 square meters, and a settlement amount of 6.5 billion yuan, up 84.82% and 112.65%, respectively. In the first half of 2017, the company's property development achieved revenue of 6.484 billion yuan, a sharp increase of 112.65% over the previous year. As of the end of the reporting period, the company had a total land reserve of 9.17 million square meters, a total of 32 proposed and ongoing projects, and a total planned construction area of more than 16 million square meters. In the first half of 2017, the company invested in properties (including hotels) achieved operating income of 1,235 billion yuan, an increase of 3.05% over the previous year. During the reporting period, Beichen Convention and Exhibition Group successfully signed contracts for two projects: Beijing Yinfeng Beichen Wuzhou Crown Hotel, Datong Beichen Wuzhou Crown Executive Apartment, and consultancy for 4 projects: the Nantong International Convention and Exhibition Center, Xi'an Chanba Ecological Zone Silk Road International Convention and Exhibition Center, the Chifeng Tourism Integrated Service Management Center Hotel, and the Zhuhai International Convention and Exhibition Center (Phase II) design optimization project. Since 2017, the company has obtained a total of 519,000 square meters of land reserve equity. In 2017, the company plans to develop properties with an estimated new construction area of 2.57 million square meters, a resumed construction area of 6.02 million square meters, and a completed area of 1.37 million square meters. In 2017, the company strives to achieve sales of 1.25 million square meters and signed contracts (including parking spaces) of 20 billion yuan. In the second half of 2017, the company expects to achieve a new construction area of 1.78 million square meters, a resumed construction area of 5.6 million square meters, and a completed area of 890,000 square meters. In the second half of 2017, the company strives to achieve sales of 750,000 square meters and signed contracts (including parking spaces) of 10.7 billion yuan. Investment advice. Expand upstream into the convention and exhibition industry, strengthen development momentum, and maintain a “buy” rating. The company's projects focus on Beijing and Changsha, and are involved in development, commercial and investment properties. The revaluation of the company's projects in Beijing benefited from the “Beijing Cultural and Creative Plan”, with an accumulated value of about 37.8 billion yuan. The company is a leader in the exhibition business in the country and is transforming into an upstream high-profit business. We expect the company's 2017-2018 EPS to be 0.24 yuan and 0.35 yuan respectively, and the corresponding RNAV is 10.38 yuan. The company's stock price/RNAV discount rate is generally the lowest among listed commercial real estate companies. Furthermore, Beijing's bid to host the Winter Olympics has now been successful. Considering the company's important performance in the Asian Games and Olympics, we expect that Beichen Industrial will probably continue to participate in related work. Considering that on the basis of business development, the company focuses on developing innovative businesses such as “Exhibition+Internet,” the health care industry, and cultural and creative industries, etc., the company was given a 10% discount on RNAV, or 9.34 yuan, as the company's target price for the next 6 months to maintain the “buy” rating. Risk warning: The company faces the risk of leasing and sales falling short of expectations.