Guide to this report: The asset value of Huangting Plaza is highlighted. Joining hands with Wangfujing to create a transformation model of “asset-light epitaxial expansion+in-depth content construction”, which is expected to open up new growth space for profit and valuation. Key points of investment: The first coverage gives an increase in holdings rating. The company's 2015/16/17 EPS is predicted to be 0.09, 0.52, and 0.87 yuan, reversing year-on-year losses, +500%, and +62%, respectively. Considering the valuation increase brought about by the company's asset-light transformation market and subsequent huge space and content creation, the company was given a target price of 41.4 yuan, corresponding to 4.8 times PB in 2016, with 35% room compared to the current price. Join hands with supermarket giants to transform commercial management flagship. The company and Wangfujing jointly established Shenzhen Royal Palace Wangfujing Shopping Center Management Co., Ltd. (51%). It is expected that they will join hands with Wangfujing to expand in an epitaxial manner with real estate operation and management services as the core, while expanding vertically into high-end consumer and financial services business sectors, transforming from a single real estate holder to an asset-light operator. Currently, the market does not fully anticipate the market development space for huge subsequent development. If you want to enter a new business format through mergers and acquisitions, content is king in the “post-commercial management” era. The company and Beijing Shengli Commercial Investment Company jointly funded the establishment of Shenzhen Royal Palace Shengli Commercial Culture Investment (66.5%), which will focus on investing in commercial projects such as children, entertainment themes, lifestyle, and related content. While improving commercial operation capabilities, the company strives to cultivate content investment in commercial projects and increase support for business content with strong scenario experience, interactivity and participation. Employee stock ownership enhances endogenous motivation, and property entrustment management enhances performance. The company's employees' equity holdings have increased by a total of 200 million yuan. Considering the majority shareholders' underwriting factor, the incentive plan's leverage ratio is expected to be 1:2, and the cost of increasing holdings is about 27 yuan. In addition, the Group has commissioned the company to provide property management services, and it is expected to increase its annual performance by more than 33 million yuan. Expected catalysts include significant progress in mergers and acquisitions of new business formats in commercial management content, construction of high-end consumption and services, real estate operation and management, and acceleration of financial services businesses. Risk warning: Royal Palace Plaza faces the risk of increased competition; subsequent transformation is uncertain.