Investment highlights: Event: The company announced a new draft restricted stock incentive plan. The company plans to grant incentive shares to 56 people at $6.24 per share. The company announced on August 31 that it intends to grant 56 people a total of 24.1 million restricted shares (2.54% of the company's total share capital on the date of the announcement of the draft incentive plan). The shares granted in this incentive plan are divided into two parts: 1) 19.35 million shares were granted to 56 people for the first time at 6.24 yuan per share, accounting for 80.29% of the total shares to be granted, accounting for 2.04% of the company's total share capital at the time the plan was signed; 2) 4.75 million shares were reserved, accounting for 19.71% of the total shares to be granted, accounting for 19.71% of the total shares to be granted, accounting for 0.50% of the company's total share capital at the time the plan was signed. The awarding targets are mainly senior management and core employees of the company. According to the draft incentive plan, the total number of recipients of this incentive mainly includes company directors, senior management, key company managers, and core business (technical) personnel of the company (excluding independent directors and supervisors), for a total of 56 people. The lifting of sales restrictions is closely linked to company performance and individual performance to fully motivate employees. According to the current equity incentive draft, the release period and ratio for the 19.35 million shares granted for the first time to be lifted are 1) within 12 to 24 months from the date of initial grant; 2) 30% of the shares granted for the first time within 24-36 months; 3) 30% within 36-48 months; and 3) 30% within 36-48 months. The performance assessment conditions are that the real estate contract sales amounts in 17, 18, and 19 are not less than 110, 150, and 20 billion yuan respectively; and based on the net profit attributable to the parent company in 2016, the net profit attributable to the parent company in 17, 18, and 19 increased by no less than 80%, 100%, and 200% compared to 2016. In addition to the company's performance, the number of restricted stocks that the incentive target can actually lift sales restrictions in that year is also linked to their individual performance evaluations in the previous year. Only when the incentive target's personal performance assessment for that year is good and above can 100% of the quota be lifted. The assessment of a company's restricted stocks closely integrates important indicators of the company's business growth and profit with the interests of incentive targets. It not only helps the company retain its core backbone, but also helps stimulate employees' enthusiasm for work and enhance the company's operating efficiency. Maintain a “buy” rating. Fuxing Co., Ltd. is an expert in urban village renovation in Wuhan. According to the company's 16th annual report and 17th annual report, the company has about 3 million square meters of urban village collective construction site renovation projects, which indirectly involve about 5 million square meters of group land supply and renovation projects. With the government's recent introduction of a collective land use system to transfer dividends, we believe the company may benefit directly. We expect EPS in '17 to be $1.15 per share. On August 31, the company's closing price was 12.47 yuan, which corresponds to a PE ratio of about 11 times in '17. Considering the long-term mechanism established by the company's policy dividends and equity incentives, we gave the company a valuation of 18 times in 2017, with a corresponding target price of 20.65 yuan, maintaining a “buy” rating. Risk warning: Policies continue to be tightened, volume and price are declining.