Matters: On November 19, the company announced the second share repurchase plan. It plans to use its own capital of 0.3 to 100 million yuan to buy back the company's shares, with the share repurchase price not exceeding 13.03 yuan/share; at the same time, the company announced the 2018 Stock Options and Restricted Stock Incentive Plan (revised draft), which plans to grant a total of no more than 4 million shares to 199 people, including middle management and core management, accounting for 1.45% of the current total share capital; in addition, the company plans to establish a wholly-owned subsidiary “Zhongheng Design Group (Hubei) Second Headquarters Co., Ltd.” in Wuhan with registered capital as RMB 10 million. Another share repurchase plan showed recognition of the company's value: on November 14, the company completed its first share repurchase and repurchased 5.1889 million shares through centralized bidding transactions, accounting for 1.88% of the company's total shares. The total capital paid was 508.703 million yuan, and the average cost of the repurchase was about 9.80 yuan/share. Recently, the company abandoned the repurchase plan. It plans to repurchase no less than 30 million yuan and no more than 100 million yuan of shares. The repurchase price will not exceed 13.03 yuan, and the repurchase period will not exceed 6 months. Based on the latest closing price, the company is expected to repurchase approximately 2.87 million shares to 9.57 million shares, accounting for 1.04%-3.48% of the company's total share capital. The company's first share repurchase will mainly be used to grant restricted shares in the 2018 Stock Options and Restricted Stock Incentive Plan. The company's second share repurchase will mainly be used for employee stock ownership, equity incentives or cancellation, demonstrating recognition of the company's value. Equity incentives cover a wide range of coverage, and steady growth in performance can be expected: The company has launched stock options and restricted stock plans to grant stock options and restricted shares to 258 people, including directors, senior managers, and core executives of the company. Of these, 4 million stock options will be granted to 199 middle management and core executives, and 5.1888,58 million restricted shares will be awarded to 59 directors, supervisors, senior management and core executives. The conditions for exercising the company's stock options are a 10% and 20% increase in performance growth in 2018-2019 (compared to 2017), respectively, and a 10%, 20%, and 30% increase in 2018 to 2020 performance growth (compared to 2017), respectively. The company's equity incentives and restricted stocks are highly involved, and the degree of incentives is high, which is conducive to steady growth in performance. The endogenous epitaxial layout is expected to increase further: the company implements an endogenous epitaxial development model, uses engineering design as the core to provide services for the entire construction engineering industry chain, and has a strong presence in East China, Northwest China, Southwest China. It has completed the acquisition of 100% of Zhuochuang Design's shares, 65% of Huazao Design's shares, and Zhejiang Consulting's 65% shares, and signed a “Stock Acquisition Cooperation Intent Agreement” with Ningxia Architectural Design and Research Institute. At the same time, the company also attaches great importance to endogenous growth drivers. The company established a wholly-owned subsidiary in Wuhan as the company's second headquarters, which will surely expand the company's management radius, accelerate the company's layout across the country, and enhance the company's overall competitiveness. The company's market share is expected to increase further. Investment advice: Maintain a “buy-A” investment rating, with a target price of 13.4 yuan for 6 months. The company also threw out a buyback plan, showing recognition of the company's value. At the same time, the company introduced stock options and restricted stocks to motivate the company's directors, supervisors and core employees to help the company's performance grow steadily. At the same time, the company has increased endogenous outreach and accelerated development, and the establishment of a second headquarters in Wuhan will help expand the company's management radius, increase its national layout, and increase its market share. I am optimistic about the company's future growth. The company's EPS is expected to be 0.74 yuan, 0.96 yuan, and 1.21 yuan respectively in 2018-2020, and the corresponding PE is 14.1, 10.9, and 8.6, respectively. Maintaining the buy-A investment rating, the 6-month target price is 13.4 yuan, which is equivalent to 18 times the dynamic price-earnings ratio in 2018. Risk warning: The implementation of PPP and EPC contracts falls short of expectations, the promotion of epitaxial mergers and acquisitions falls short of expectations, and increased competition in the industry.