Investment highlights: The company disclosed its 2020 three-quarter report. Affected by the pandemic, revenue and profit have declined. The company achieved operating income of 120.1 billion yuan in the first three quarters of 2020, down 20.3% year on year, down 8.3 pct from the previous quarter; realized net profit of 2.04 billion yuan, down 19.9% year on year, down 6.7 pct from the previous quarter; and net profit attributable to shareholders of listed companies was 1.08 billion yuan, down 30.0% year on year, down 4.4 pct from the previous quarter. There was a slight decline in sales. New construction starts and rapid growth in construction area indicate sufficient value for 2020Q4 and 2021. In the first three quarters of 2020, the company achieved a contract volume of 161 billion yuan, a year-on-year decrease of 0.6%, a decrease of 22% from the previous quarter, and completed 60% of the annual target; it achieved a sales contract area of about 610,000 square meters, a decrease of 21% over the previous year. During this period, the company's real estate added about 1.92 million square meters of construction area, an increase of 27% over the previous year; the completed area was about 710,000 square meters, an increase of 62% over the previous year. Land acquisition/sales amount reached 91% in the first three quarters. In the first three quarters of 2020, the company acquired a total of 9 projects, with a total land acquisition amount of 11.8 billion yuan in tenders, an equity amount of 6.2 billion yuan, and land acquisition payments of 1.3 billion yuan in mergers and acquisitions. The company's land acquisition efforts were strong in the first three quarters. The total land acquisition price was 14.7 billion yuan, an increase of 187% over the previous year, 2.29 million square meters of land acquisition, an increase of 173% over the previous year, and land acquisition amount/sales amount was 91%. At the same time, land acquisition costs were well controlled, with a land sales ratio of 24.3%. Inventory as a share of assets has increased dramatically. The company's sales in January-September were 161 billion yuan, which is basically the same as last year. As of September 2020, the company has a land reserve of about 20 million square meters. According to static estimates, it is estimated that it can be sold for more than 5 years. Inventory increased by 21.7% over the end of the previous year, accounting for a significant increase in total assets, which indicates that there is sufficient potential for future value release. The soil storage layout is rich and the location is superior. Based on construction surface calculation, the share of new land storage in the second and third tier was 68.7%/31.3%, while the Yangtze Delta/Haixi/Pearl Delta/others accounted for 9.6%/28.3%/25.6%/36.5%. From January to September 2020, the company leased an area of about 1.7 million square meters of real estate, obtained rental income of about 440 million yuan, and a comprehensive rental rate of about 81%, which is a stable source of cash flow. The cash flow is sufficient, and the leverage ratio is still low. The company's balance ratio excluding advance payments was 63.4%, up 5 percentage points from the end of 2019, and the leverage ratio was relatively stable. According to the company's current projects, the company's capital expenditure in 2020 is estimated to be 19.5 billion yuan, and the three expenses are estimated to be 3.5 billion yuan. It plans to use financing methods such as bank loans, debt financing, and pre-sale housing payments to meet capital requirements. Seizing the opportunity of abundant market liquidity in the first half of the year, the company issued 55 billion yuan in bonds in the first three quarters, an increase of 22.2% over the previous year. The weighted average coupon interest rate was 3.8%, down 0.5pct from the same period last year. Currently, the company holds 15.6 billion yuan in cash, 2.0 in monetary capital/short-term debt, and low risk of short-term debt repayment. Maintain the buying rating and lower the profit forecast. The company implements the Group's integrated two-wing strategy and has high-quality residential+commercial land reserves worth nearly 200 billion dollars, with Tier 1 and 2 accounting for 85%. The asset quality is of high quality, the market is seriously underestimated, and the management has changed their business thinking positively, putting forward a vision for a compound sales growth rate of more than 40% over the next 5 years. Affected by the pandemic, the 2020-22 forecast was lowered, and the net profit attributable to the parent company in 2020-22 is expected to be 22.7/27.4/3.41 billion yuan (the net profit attributable to the parent company in 2020-22 was originally estimated at 27.1/32.1/37.1 billion), with a year-on-year growth rate of -6.7%/20.8%/24.6%. The corresponding EPS is 0.60/0.73/0.91 yuan, respectively. The PE corresponding to the current price is 9.7X, 7.9X, 6.4X. Risk warning: sales fall short of expectations, rent falls sharply