Key investment points: The equity transfer method obtained 5,000 acres of land in eastern Chengdu. According to the company announcement, Fuxing Fitch Real Estate Company, a subsidiary of Fuxing Co., Ltd., acquired 100% of the shares of Jianyang Phoenix Valley Investment and Jianyang Phoenix Valley Real Estate, a target company held by natural person Ling Zhun. Through this transaction, Fuxing Co., Ltd. will obtain the right to develop and use 4,929 acres of land from Phoenix Valley Co., Ltd. According to the announcement, the floor price agreed between the parties to the transaction will fluctuate between 3,000 yuan per square meter and 4,500 yuan per square meter. The exact transfer price will have to be determined by the evaluation agency after determining the asset valuation. Jianyang - Chengdu Industrial Park concentration area. Jianyang is located on the east side of Chengdu and managed by Chengdu. In the development layout of key industries in Chengdu, 3 parks in Jianyang have been included as key industrial parks in Chengdu for key construction. The region is hosting the “Belt and Road” initiative for the construction of an international aviation hub (the country's second largest airport) and the construction of the “Tianfu New Area” as an international tourism and cultural functional zone. In the long run, Jianyang has huge scope for industrial development and economic development. The expected benefits are considerable, and long-term leasing can be tested. The project acquired by Fuxing Co., Ltd. is located in the Chengdu High-tech Development Zone. According to the company's announcement, the company expects project revenue of 1-1.3 billion yuan. The project covers a total area of 4,929 acres and is divided into two major parts: 1) 800 acres of land for development and construction, of which 308 acres of land have been granted use rights. 2) 4125 acres of collective land. The company said it will try to explore the leasing business. Maintain a “buy” rating. Fuxing Co., Ltd. is an expert in urban village renovation in Wuhan. According to the company's 2016 annual report and 17 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 the 2017 EPS to be 1.15 yuan per share. On September 7, the company's closing price was 12.63 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.