Events: In the first half of 2017, revenue was 1.70 billion yuan, a decrease of 8.4%; net profit of 180 million yuan, an increase of 2.63%; basic earnings per share was 0.058 yuan, compared to 0.057 yuan in the same period last year. Key points of the review 1. The value-added dividend of land storage has been steadily released, and RNAV is highly discounted: 1) The sales amount in the first half of the year was 1.95 billion yuan, and the sales area was 135,000 square meters. The reduction in sales area is mainly due to the company's transformation, abundant capital, and active adjustment of promotion speed. 2) The unsettled equity surface is 3,318 million square meters, including 2.8 million square meters in Jiangbei in Nanjing and 210,000 square meters in Shanghai. Benefiting from rising housing prices in Shanghai and Nanjing, the land value-added dividend was remarkable. RNAV increased to 8.8 yuan, a 36% discount (regardless of business other than real estate development). 3) The average sales price for the first half of the year was 14,400 yuan/square meter, rising for 3 consecutive years since 2014, and land value-added dividends have been released steadily. The company's projects are of high quality and abundant cash, and are not greatly affected by the regulation of Shanghai and Nanjing. Venice Water City sells for 203,000 square meters, and the Shanghai project sells for 38,000 square meters, which have not declined since rising rapidly in 2016. Projects in Wuxi, Yixing, Wuhu, and Jilin were well decommissioned, and prices rose slightly in the first half of the year. 2. The real estate industry has a high performance guarantee, and is expected to grow steadily throughout the year: pre-sale accounts have risen to 6.45 billion dollars, 5.97 billion at the beginning of the period; the company's settlement of previous years is generally concentrated in the second half of the year. Assuming to maintain revenue of 8.25 billion in 2016, the current pre-payment coverage for the second half of the year is 98.5%, a significant increase from 72.4% at the beginning of the period. Revenue is guaranteed throughout the year. Housing prices for the Nanjing Jiangbei project doubled in 2016, and settlement margin will increase (overall gross profit in 2015 and 2016 was 19% and 20%, respectively). Revenue guarantees are compounded by increased gross profit, and gross real estate profit is expected to continue to grow throughout the year (gross profit increased by 21% in 2016). 3. Cultural and sports have been fruitful, and business is growing rapidly: The revenue of the cultural, sports and creative sector increased by 21.2%, and gross margin increased by 2.4 points, maintaining the rapid growth momentum since the transformation. High quality dramas have been screened. “Legend of the Eight Sides” was screened on CCTV in the first half of the year, “The Nut Shop 2” and “Shadow” have already been screened in the second half of the year, and SPARK and “Peking Man in Beijing” will soon be screened. “The Nut Shop 1” grossed $75 million worldwide, making it the second-best grossing in Asia in North America. The sequel is worth looking forward to. The Suning Art Museum was completed and operated to create a comprehensive platform for art education and communication. It is a window for Suning's cultural and sports brand promotion. 4. The transformation of medicine and aesthetics is firm and deserves deep attention: the company's transformation of medicine and aesthetics is determined and is committed to becoming a leader in the Chinese medical and aesthetic industry. Currently, the Medical Aesthetic Fund has 11 medical and aesthetic hospitals. It is expected that after the training is completed, it will be injected into listed companies (standardize operations, training, services, procurement, etc., and unify brand promotion to achieve profit) to form new performance growth points. It has been 1 year since the fund acquired 11 medical and aesthetic hospitals. The long cultivation period is mainly due to the low standardization of the medical and aesthetic industry and the company's prudent promotion and stability. The company has abundant capital, exclusively introduced Korea's top ID medical and aesthetic resources, and acquired Shanghai Tianda Medical Aesthetic and others to obtain medical and aesthetic licenses. We believe that the company has the most integrated strength in the medical and aesthetic industry, and we recommend continuing to pay attention. 5. Real estate dividends have been released steadily, and the transformation is progressing steadily. Maintaining the “recommendation”, the company's 2017-2019 EPS is expected to be 0.47, 0.70, and 0.78 yuan, respectively, and the corresponding PE is 12X, 8X, and 7X respectively. The current NAV is 36% off and has a “recommended” rating. 6. Risk warning: company settlement falls short of expectations, transformation progress falls short of expectations