Event: In 2017, the company's revenue was 11.761 billion yuan, up 24.92% year on year; net profit after deducting 781 million yuan, up 72.97% year on year; at the same time, the company plans to pay 1.5 yuan for 10. Investment points: The retail industry is picking up, and department stores may benefit. Judging from historical rules, the recovery in the overall growth rate of the industry will drive the recovery of retail enterprises. In 2017, the national retail industry showed slight signs of recovery. The retail sales of the country's top 100 major retail enterprises increased 2.8% year on year, up 3.3% year on year over 2016. For retail units above the limit, retail sales of supermarkets, department stores, specialty stores and specialty stores increased by 7.3%, 6.7%, 9.1%, and 8.0%, respectively. Revenue grew rapidly, and the expenses ratio remained stable during the period. The company's revenue was 11.761 billion yuan, up 24.92% year on year; net profit after deducting 72.97% year on year was 72.97%. As the company actively carried out shopping center transformation, the company's ratio in direct management and leasing increased, resulting in an increase in the company's gross margin of nearly 2% to 28.10%. At the same time, the net interest rate increased by 3.17% to 9.24% due to the company's better control of the period expense ratio (the period fee rate was 15.70%, down 0.66% year on year). Outreach mergers and acquisitions will drive company growth. The company will continue to drive corporate growth through mergers and acquisitions of high-quality commercial assets under the group and high-quality local assets. In 2018, the company expanded its business area to Chongqing through mergers and acquisitions of Chongqing Maoye. The company will continue to adhere to epitaxial expansion, achieve complementarity between brand advantages and regional advantages through absorption and merger of regional leaders, and increase market share. We predict that the company's 2018-2020 EPS will be 0.65, 0.70, and 0.73 yuan, covering the recommended rating for the first time. Risks indicate the risk of a downturn in the trade and retail industry, and the risk that the performance of corporate mergers and acquisitions projects does not meet expectations