Introduction to this report: The steady growth in the scale of the company's active management trusts led to an upward trend in the company's performance. The company's active management scale reached 158.5 billion yuan, +12.1% compared to the beginning of the year, accounting for 68% (60% at the beginning of the period). Key investment points: Maintain the target price of 16.8 yuan, corresponding to 18P/E 19X, increase holdings. The company's 2017 operating revenue/net profit to mother was $55.9/3.67 billion yuan, +6.6%/+20.9% year-on-year, in line with our expectations. The company plans to distribute 5 yuan for every 10 shares converted to 2 shares. The steady growth in the size of the company's active management trusts led to an increase in the company's performance, and the year-on-year decline in income from proprietary investment dragged down the performance; the proportion of the company's active management scale further increased to 68%, and active management capabilities are outstanding, and the issuance of preferred shares will strengthen the company's net capital advantage. Adjust the company's 18-20 EPS to 0.89/0.96/1.07 yuan (adjusted before 18-19:0.88/1.05 yuan). The scale of active management has grown steadily, and its share has further increased. 1) The company's net income from trust business fees in 2017 was 5.28 billion yuan, +16.9% year-on-year. The increase in trust business revenue was mainly driven by the increase in active management scale. At the end of 2017, the company's trust management scale reached 232.6 billion yuan, -1.02% from the beginning of the year, and the active management scale reached 158.5 billion yuan, +12.1% from the beginning of the year, accounting for 68% (60% at the beginning of the period). 2) The average return rate of trust business in 2017 was 2.26%, +18% compared with the same period last year, mainly due to the increase in the share of active management business. 3) Intrinsic business contributed to performance. Proprietary investment income in 2017 was 78 million yuan, -85.2% year-on-year, and the average return on proprietary investment was 0.8% (7% in 2016). The trust industry's exit channel has limited impact on the company, and the issuance of preferred shares lays a capital advantage. 1) By the end of '17, the company's passive management business scale had dropped to 74 billion yuan, accounting for 32%, far below the industry average. The impact of the trust industry's exit channel on the company's performance was extremely limited. 2) The company announced in September '17 that it intends to issue no more than 6.8 billion yuan of preferred shares to supplement net capital. The issuance of preferred shares will further strengthen the company's net capital advantage and help the company actively manage trust business and inherent business growth. Catalyst: The issuance of preferred shares has advanced; there has been a breakthrough in the layout of the comprehensive financial sector. Risk factors: The scale of actively managed trust assets declined, and the return on investment in the inherent business was lower than expected.