incident. The company published its 2017 annual report. During the reporting period, the company achieved operating income of 20.81 billion yuan, an increase of 0.14% over the previous year; net profit attributable to shareholders of listed companies of 1.95 billion yuan, an increase of 92.6% over the previous year; and realized basic earnings per share of 1.14 yuan. The company distributed a cash dividend of 2 yuan (tax included) for every 10 shares, and transferred 3 shares for every 10 shares. In 2017, the company's real estate sales carried over steadily, and operating income increased by 0.14%; the increase in profit from subsidiary real estate projects during the same period led to an increase in net profit to 92.6%. According to the company's 2017 annual report, in 2017, the company signed sales volume of 23.662 billion yuan and repayment of 23.17 billion yuan. In 2017, the company continued to promote transformation and innovation in the following seven areas: First, the guaranteed housing project. The second is an urban village in Shanghai. Third, historic towns. Fourth, Yin Shi Farm. The fifth is urban renewal. The sixth is rental housing. The seventh is cold chain logistics. The company uses Haiwa Logistics as the main body and the West Hongqiao Cold Chain Logistics Park as the carrier to promote the construction of a comprehensive service park for the entire cold chain food industry chain. At the same time, the company actively accelerates collaborative development between logistics, supply chain, vegetable management and other industries and real estate, and enhances the linkage efficiency between real estate and industry. In January 2017, the company signed the “Framework Agreement on Urban Village” plot renovation in Jinshanwei Town and Shanyang Town, Jinshan District, Jinshan District, with the Shanghai Jinshan District Urban Reform Office. In March 2018, the company cooperated with **** Tianyuan to invest in the development and operation of a supporting hotel for the **** Tianyuan Project in Chongming District, Shanghai. According to the company's 2017 annual report, in 2018, the company plans to start a new construction area of 2.28 million square meters and a planned completion area of 2.22 million square meters. Investment advice. Real estate and cold chain logistics are two-wheel drive, giving a “buy” rating. The company is a large domestic state-owned integrated real estate group whose main business includes comprehensive real estate development and management, and logistics industry chains. Currently, the company is based in Shanghai, steadily expanding economically developed cities, and actively exploring the direction of old reforms and characteristic towns. The company's commercial real estate business adopts a full industry chain management model. The company's cold chain logistics industry chain business has large-scale bonded room temperature warehouses and cold chain logistics parks in Yangshan Free Trade Zone, Dahongqiao, etc., and has Shanghai vegetable manager e-commerce. The company has strong third-party logistics service capabilities in cold chain logistics, bonded supply chain logistics, and urban cold chain distribution. We expect the company's EPS for 2018-2019 to be 1.02 yuan and 1.26 yuan, respectively. We gave the company 10 times dynamic PE in 2018, corresponding to the target price of 10.2 yuan for the next 6 months, and gave it a “buy” rating. Risk warning: The company's development projects face policy regulation risks, and the logistics business is vulnerable to the risk of economic downturn.