Event: The company published its 2014 annual report. Net profit attributable to shareholders of listed companies was 698 million yuan, an increase of 28.18% over the previous year; basic earnings per share were realized at 0.64 yuan. The company's dividend plan is to distribute a cash dividend of 1.9 yuan (tax included) for every 10 shares. The company announced its 2015 quarterly report. During the reporting period, the company achieved operating income of 1,918 billion yuan, a year-on-year increase of 79.97%; net profit attributable to shareholders of listed companies was 241 million yuan, an increase of 6.13 times over the previous year; and realized basic earnings per share of 0.21 yuan. Investment suggestion: At present, the construction of a free trade zone has been upgraded to a national strategy, and the fundamentals of the company's Waigaoqiao will enter a stage of substantial reversal. In the future, the company will focus on developing the first phase of the free trade zone project, including the port area, logistics area, Sunland Middle Zone and South Block international communities to achieve “industry-city integration”. Among them, the Sunland project is 1.3 million square meters (788,800 square meters have been launched so far), which is expected to bring rich returns to the company. We expect the company's EPS for 2015 and 2016 to be 0.74 and 0.91 yuan respectively. Comparing the revaluation of factors of production under the Hong Kong free port policy, we expect that in the future, the company's asset value will significantly benefit from the progress of the Pilot Free Trade Zone and be benefited from the five major benefits of policy dividends, industrial upgrading, land price revaluation, positioning changes, and functional upgrades. For this reason, we expect the company's RNAV to reach 42.72 yuan. As of April 29, the company closed at 37.76 yuan, corresponding to PE of 44.10 times and 35.99 times of PE in 2015 and 2016, respectively. Considering that the Sunland project has entered the peak of development, Waigaoqiao will benefit from the construction of the Pilot Free Trade Zone, and targeted financing will accelerate the construction of the company's five major platforms, we use RNAV, or 42.72 yuan, as the target price for six months to maintain the “increase in holdings” rating.