Summary of the report:

After listing, the major shareholders of the company changed twice in November 2002 and March 2012 respectively, and returned to the Hainan Provincial Department of Communications again 10 years later, indicating that the strategic positioning of the company is not stable and clear enough.

According to the company's plan, Hainan Expressway will continue to do a good job in the development of three traditional main industries in the future, first, highway construction and management, second, real estate industry, and third, hotel tourism service industry.

The income from highway construction and management is gradually shrinking, and with the change of major shareholders, there may be new expansion of business in this area in the future.

The hotel tourism service industry can only maintain its own balance, and it is difficult to have great development in the future.

The real estate business will be the main focus in the next few years, but it is lack of explosive.

Valuation and earnings forecast: we expect the company's earnings per share from 2012 to 2014 to be 0.10 yuan 0.14 yuan and 0.15 yuan respectively; the company's net assets revaluation is 3.5 yuan per share, higher than the book value of 2.62 yuan, the valuation is slightly undervalued.

Investment rating: the company is an invisible real estate company with general growth in the future, but considering that the current valuation is not high, the company's currency fund balance is high, and the financial risk is very small, Hainan Expressway is cautiously recommended for the first time.

Risk hint: the strength and time of real estate macro-control exceeds expectations or the imbalance of the company's performance settlement will make our performance forecast fall short of expectations; at the same time, the company's business is mainly concentrated in Hainan, which will be greatly affected by fluctuations in the regional real estate market.