This report is read as follows:

The management parachutes or activates the attributes of the company's capital operation platform. With reference to the potential market capitalization of EMS, we believe that the company is undervalued.

Main points of investment:

For the first time, the overweight rating is given, with a target price of 43 yuan. It is estimated that the EPS of the company in 2015-2017 will be-0.23 pound 0.04 pound 0.04 yuan. We judge that the management airborne is expected to activate the attributes of the company's capital operation platform. With reference to the market value of similar transitional companies and the potential market value of EMS, we think that the value of the company is undervalued, with a reasonable market capitalization of 7 billion yuan and a target price of 43 yuan.

The company is currently the only listed company of China Post Group. The company is mainly engaged in IT integration for postal systems, and is currently the only listed company of China Post Group. The group's assets are divided into three major sectors, including public welfare postal franchise, competitive financial industry and express industry. According to the Wall Street Journal, Postal Savings Bank of China has prepared Hong Kong stock IPO and expects A-share IPO this year. Based on this, EMS is the only securitized asset that is expected to take advantage of its subordinate listing platform.

External catalysis: express industry capitalization accelerated, EMS listing is expected to restart. High market concentration and high capitalization rate, the inevitable trend of industry development. The top four express companies in the United States account for about 95% of the industry, while the top four in China account for about 50% of the industry. We believe that the industry advantage enterprises in the next three years with the help of the capital market to achieve industry integration is a high probability event. The capital tide of the domestic express industry has begun, and EMS is the only one of the top five companies in the industry that has not admitted that it plans to land in the capital market. EMS is on the market and is expected to restart.

Internal change: the new management is parachuted, and the attribute of the company's capital operation platform is expected to be activated. The shares of the company have been transferred from Hunan Post to China Post assets. The group management parachute means that the company has completely risen from scattered chess pieces to an important capital operation platform. Considering the acceleration of the capital process of the express industry, we believe that the management parachuting may further activate the platform attribute of the company.

Risk hint: the reform process of the group's state-owned enterprises is lower than expected; the injection of EMS assets is lower than expected