Tourism Real Estate helped the company to double its revenue performance. Focus on the events of the subsequent national reform process: the company achieved revenue of 1,621 billion yuan in 2017, up 10.87% year on year; net profit to mother was 0.72 billion yuan, up 10.93% year on year; net profit after deduction was 63 million yuan, up 24.92% year on year; EPS was 0.0979 yuan. Among them, 17Q4 achieved revenue of 799 million yuan, a year-on-year increase of 69.05% (Q1-Q3 year-on-year growth rates were 45.85%, -36.85%, and -16.00%, respectively); net profit to mother was 35 million yuan, up 1389.92% year on year (Q1-Q3 year-on-year growth rates were 100.93%, -56.34%, and -42.94%, respectively). The increase in the company's performance was mainly due to the revenue growth of the holding subsidiary Yunnan World Expo Xingyun Real Estate Co., Ltd. Among them, the Mingfeng Neighborhood Project opened for sale in the third quarter. Last year, the tourism real estate business revenue was 426 million yuan, an increase of 248.45% over the previous year. At the same time, Jiangnan Garden Company vigorously promoted key projects in Wuhai, Tongliao, Suzhou, Pizhou, Chifeng, etc., and won bids for projects in Ulanhot, Jingdezhen, and Jiangyin. Revenue increased dramatically in the fourth quarter. Revenue from the main tourism industry remained stable, and sales in the core region of Yunnan increased sharply. From a business perspective, the revenue of the tourism real estate sector was 425 million yuan, up 248.45% year on year, accounting for 26.24%; the revenue of the tourism and transportation sector was 235 million yuan, down 0.80% from the previous year, accounting for 14.48%; the revenue of the garden and gardening sector was 633 million yuan, down 19.43% year on year, accounting for 39.03%; the revenue of the tourism and culture sector was 27.1358 million yuan, up 811.69% year on year, accounting for 1.67%. Other business revenue was 247.551 million yuan, up 94.68% year on year, accounting for 1.53%. Gross profit margin has been rising steadily, and expenses have been managed reasonably throughout the year. The company's overall gross sales margin was 29.74%, an increase of 2.96pct over the previous year. By business, the gross margin of the tourism real estate sector was 42.59%, a year-on-year decrease of 14.25 pct; the gross margin of the travel transportation sector business was 36.35%, an increase of 8.00 pct over the previous year, and the gross margin of the garden and gardening sector business was 21.64%, a decrease of 1.86 pcts year-on-year. The company's expense ratio for the period was 15.58%, up 0.14 percentage points from the previous year, and remained stable. Among them, the sales expense ratio was 4.17%, a year-on-year decrease of 0.18pct; the management expense ratio was 8.19%, a year-on-year decrease of 0.85pct; and the financial expense ratio was 3.21%, an increase of 1.16 pct year-on-year, mainly due to the increase in the parent company's current bank loans compared to the same period last year, and interest expenses increased by 21.7358 million yuan. OCT has taken over and is concerned about the subsequent progress of the company's resource integration. OCT became the controlling shareholder of Yunnan World Expo Travel Group and Yunnan Tourism Co., Ltd. through a capital increase in shares in the World Expo Group. At the same time, with regard to Yunnan Province's strategy of investing 250 billion yuan to focus on “culture+tourism+urbanization,” future cloud travel will prioritize the benefits of asset injection and business expansion opportunities in the resource integration process. The company acquired all shares of World Expo Wedding Culture Company with cash in September, once again laying out the wedding industry chain, demonstrating the firm determination of the company to transform and upgrade, and the continuous strengthening of the company's resource integration expectations in the future. Maintain an “Overweight” rating. As the target of the state-owned enterprise reform in Yunnan Province, the company introduced OCT Group as the controlling shareholder. In the future, the company will position itself as a regional resource integration platform, and it is expected that priority will benefit from asset injection and business expansion in the resource integration process. Since the company's 2017 report data was slightly lower than our previous expectations, in response to a slight reduction in profit forecast, we adjusted the company's 18-19 EPS from 0.19/0.21 yuan to 0.14/0.18 yuan, and the corresponding PE was 51/41X, maintaining the “gain” rating. Risk warning: Integration progress falls short of expectations; extreme weather impacts.