A brief introduction to the basic situation of the company. Dat Xanh Hong Kong was formerly known as Shenggao Land (Holdings) Limited. In 2013, Greenland Holding Group subscribed to 60% of the share capital of Shenggao Land and became the company's largest shareholder. As an international platform for Dat Xanh Group's capital operation, the company provides strong support for Dat Xanh Group's sustainable development.

The entry into Greenland brought about a fundamental improvement in corporate fundamentals. By the end of 2014, the company's land reserves had exceeded 14.3 million square meters. We expect the company to reach more than 18 billion dollars in sales in 2015. Considering that the Group currently clearly requires the H-share platform to achieve real estate sales revenue of 50 billion yuan or more by 2018, it is estimated that Dat Xanh Hong Kong will account for 20%-30% of Dat Xanh Group's overall sales share in the future.

Greenland Finance opens up new business space: 1) Greenland Financial Services business model. The financial business sector of Greenland Hong Kong has basically completed four major structures, including real estate crowdfunding, community P2P, service customization, and the group's overseas financial platform. The four core development ideas are to integrate small to medium developers, small and medium financial institutions, and individual investors through Greenland Financial Services. Dat Xanh Hong Kong has now joined forces with companies such as China Ping An Lujin Institute, Zhongan Insurance, Oriental Asset Management (International) Company, and Ant Financial to jointly build a real estate finance ecosystem. Judging from the current development trend, the company's strategic ideas of expanding the platform, adding ports to the front end, adding services to the back end, and the middle end based on real estate assets are clear. 2) The first product of Greenland Financial Services - Real Estate Treasure. “Greenland Real Estate Treasure Phase 1”, with an initial order scale of 170 million yuan, was launched on the P2P website “Lucky Treasure” owned by Alibaba Ant Financial. The product lasts for one year, and Anbang Property Insurance Co., Ltd. provides performance guarantee insurance to guarantee payment of principal and income at maturity. In addition, the products were repurchased by Shanghai Yiyi Investment Partnership, a subsidiary of Greenland. Real Estate Bank focuses on the securitization of real estate properties. Greenland acts as an intermediary to help finance owned projects owned by small and medium-sized housing enterprises and collect 0.5-2% management fees.

Investment suggestions: The real estate service industry chain in the two cities is scarce. Once the business is formed, there is plenty of room for valuation. This is the first time a “buy” rating has been given. We believe that the future development prospects of the industry that Greenland Hong Kong is currently entering are promising, and if the company can effectively enter into later stages of development, there is broad scope for development. As of June 9, 2015, the company's stock price was 6.17 Hong Kong stocks. According to estimates of 0.43 and 0.55 HKD in 2015 and 2016 (corresponding RMB 0.34 and 0.43, exchange rate of 1 HKD to 0.78 RMB), corresponding to 2015 and 2016 PE was 14.35 and 11.22 times. 1) In the start-up phase of the business, valuation is closer to companies related to the real estate service industry chain. Currently, the dynamic valuation of mature companies in the real estate service industry chain is around 40 times. 2) At the stage of business maturity, valuations are closer to Internet finance companies. Consider that at present, enterprises have defined medium- to long-term internet finance strategic goals with a platform transaction scale of 100 billion dollars in 3 years. We believe that in the later stages, once the enterprise model city increases in scale, and has a sound risk control and sales system, the level of enterprise valuation should be closer to that of Internet financial enterprises. Currently, the valuation level of A-share related companies is about 240 times dynamic. Considering that the relevant business is in the start-up stage, the company was given a valuation level of 30XPE in 2015, corresponding to a target price of 12.9 yuan, and a purchase rating for the first time.