Event: The company released its 2014 annual report. Net profit attributable to owners of the parent company in 2014 was 768 million yuan, up 9.06% from the same period of the previous year; operating income was 4.85 billion yuan, up 8.28% from the same period of the previous year; basic earnings per share was 0.5 yuan, up 8.70% from the same period last year. Opinion: Performance grew steadily, and net profit doubled year-on-year after deduction. The company achieved operating income of 4.850 billion yuan, an increase of 8.26% over 4.480 billion yuan in the same period last year; of these, real estate project carry-over revenue was 4.217 billion yuan, up 4.30% from 4,043 billion yuan in the same period of the previous year; total profit was 1,031 million yuan, up 15.71% from 891 million yuan in the same period last year, and realized net profit of 761 million yuan, an increase of 3.40% over 736 million yuan in the same period last year; net profit attributable to the parent company was 768 million yuan, an increase of 9.09% over 704 million yuan in the same period last year. Earnings per share were two cents more than our forecast, slightly exceeding expectations. The company has sufficient projects under construction, and sales growth is guaranteed. In 2014, the new construction area was 1.55 million square meters, up 7.5% year on year; the completed area was 898,800 square meters, up 80.2% year on year. As of December 31, 2014, the company had an area of 3.364,900 square meters under construction. In 2014, through equity acquisitions and land market listings, a planned construction area of 3,044,800 square meters was added to the land reserve. Of the new reserves, the Yangtze River Delta, Central Region, and Pearl River Delta accounted for 20.23%, 29.54%, and 41.35% respectively. Companies affiliated with Shanghai, Ningbo, Anhui, Chongqing, Shenyang, and Hainan have implemented regional deep cultivation strategies; through collaboration with China Cinda Guangdong Branch, they obtained the Jiayue Group project through debt-bearing acquisitions, and achieved the strategic layout of the Pearl River Delta region. As of December 31, 2014, the planned construction area of the company's reserve project is 5.446 million square meters, which will strongly guarantee the company's rapid growth. Develop collaboratively with major shareholders, and there is plenty of room for business expansion. The company will continue to strengthen group collaboration and continuously innovate the company's business model and profit model. Taking advantage of China Cinda's poor asset management, investment, asset management, and financial service functions, it has transformed from a real estate developer in the entire industry chain to a combination of real estate investors and real estate professional service providers, and from simply obtaining project development profits to diversified revenue sources such as development profits, consulting and supervision business income, and investment income. The synergy between the company and major shareholders in business sharing, customer resources and organizational networks will further develop the benefits. The company relies on collaboration with China Cinda Group, has certain countercyclical operation capabilities and mergers and acquisitions capabilities, and has plenty of room for business expansion. To this end, in 2014, the company set up a special investment and financing department to actively participate in the bankruptcy and restructuring of the Jiayue Group. Through the debt-based acquisition of the Jiayue Group real estate project, the financial real estate business was used to expand the scale, and a breakthrough in the differentiated development model was achieved. Conclusion: The company is the only A-share real estate development company under AMC. The company's revenue and performance grew rapidly in 2014. We are optimistic about the potential for cooperation between China Cinda and the company in the field of financial real estate. In 2014, in the face of rapid sales growth, the company acquired the Jiayue Group real estate project through a debt undertaking, and achieved large-scale expansion using the financial real estate business, adding a planned construction area of 3,044,800 square meters of land reserves. As of December 31, 2014, the planned construction area of the company's reserve project is 5.446 million square meters, which will strongly guarantee the company's rapid growth. We expect the company's revenue in 2015-2017 to be 6.890 billion yuan, 13.162 billion yuan, and 18.638 billion yuan respectively. The corresponding EPS is 0.67 yuan, 0.84 yuan and 1.02 yuan, respectively, and the corresponding PE is 12.58X, 10.13X, and 8.26X, respectively, maintaining a “highly recommended” rating, and a target price of 10.35 yuan for three months.