Incident: Shenzhen Zhenye A (0000060) announced its 2016 performance forecast today. It is expected that net profit attributable to shareholders of listed companies in 2016 will increase 80% to 110% compared with the same period last year. Comment: The company expects net profit attributable to shareholders of listed companies in 2016 to be 750 million to 875 million, an increase of 80% to 110% compared with the same period last year. However, for the full year of 15, the company achieved a net profit of 4.16 yuan attributable to shareholders of listed companies. Results for the full year of 2016 are expected to increase significantly, corresponding to earnings per share of about $0.55 to $0.64. There was a significant increase in the company's performance in the current period compared to the same period last year, mainly because the company confirmed a large amount of investment income from the cooperative development project with Shenzhen Metro Group Co., Ltd. this year. Among them, the company achieved operating income of 1,145 million yuan in the first three quarters, an increase of -50.3% over the previous year; realized imputed net profit of 114 million yuan, an increase of -58.64% over the previous year, and earnings per share of 0.084 yuan. The company's performance in the first three quarters declined, but Jinhui Park, a cooperative development project between the company and Shenzhen Metro, will begin to achieve settlement revenue in 2016, which will significantly boost the company's performance throughout 2016. Overall, it is expected that the company's 16-year performance will achieve ideal growth and support the increase in valuation. At the same time, the current layout of the urban location of the property market has good prospects. Backed by deep state-owned internal resources and a strong state-owned enterprise background, it has great advantages in obtaining project resources, capital, etc., and cost control. The company's state-owned enterprise reform expectations are strong, and it is worth looking forward to speeding up development. The cooperation project with the Shenzhen Metro has entered the settlement period, and the results for the next two years will be supported. The company's EPS in 2016 was raised to 0.58 yuan, corresponding to the current stock price PE by 17 times, maintaining the “recommended” rating.