The level of pension in China is equal to the monthly income level of 4.4 months, which is much higher than that of the industry. It is estimated that about 300 million yuan of people's allowance is idle. We estimate that the plan will maintain a dividend rate of 100%, and we expect the collection to pay a special dividend to improve the return rate of equity interests in order to reduce the concentration payment level.

Steady increase in income-China added three more restaurants in 2018, which is expected to be less than expected. With the opening of the store in 2019, the management office said that it would hold one or two small gatherings in Tang Dynasty, and this year it will focus on the existing business. We estimate that the growth of market income will be maintained at about 10% this year.

The return rate is still at a high level-in 2018, China's share of equity fell by 12.3% to 115 million yuan per year, while the return rate of equity fell by 3.6% to 22.4%, but it was still at a high level. As the value-added reform will have a negative impact on the market, coupled with the continued rise in staff costs, we estimate that there will still be a decline of about 10% in market profits this year.

Valuation-We are going to increase our holdings in China to HK $1.61. This heading is based on the dividend realized valuation model (Dividend Discount Model). At HK $1.38 per share on April 12, 2019, there was an increase of 16.67%.

Investment strategy-in 2018, China's domestic economy grew and expanded, the catering industry was fierce, and staff costs were constantly increasing, all of which contributed to the profits of the industry. The pace of development in China has also been relaxed, and attention has been paid to the existing duties and careful opening of stores within the year. However, the collective stock market is still generous in paying dividends, with a dividend yield as high as 9.13%. It is recommended that investors increase their holdings in the market.