From January to September 2009, the company achieved operating income of 1,507 billion yuan, up 8.96% year on year, operating profit of 541 million yuan, up 42.28% year on year, net profit attributable to parent company owners of 404 million yuan, an increase of 33.50% year on year, and achieved diluted earnings of 0.19 yuan per share. Among them, in the third quarter, the company achieved operating income of 524 million yuan, an increase of 0.57% over the previous month, and net profit attributable to the parent company of 163 million yuan, equivalent to 0.076 yuan of diluted EPS, an increase of 16.16% over the previous quarter. Increased gross margin and increased return on investment are the main reasons for the company's profit growth. The company's net profit growth rate in the first three quarters was higher than revenue. On the one hand, the company's main business gross margin increased 3.9 percentage points to 63.8% year on year; on the other hand, the joint venture Zhongyuan Trust contributed 48.8 million yuan in investment income, a sharp increase of 250% over the previous year, an increase of 35.7 million yuan. The Zhengluo and Luozhu Expressway are being renovated and expanded. The company mainly operates the road and bridge assets “three roads and one bridge”, including the Zhengluo Expressway, the Luozhu Expressway, the Zheng Yao Expressway and the Yellow River Bridge, with a total length of 423 kilometers. Currently, Zheng Luo and Luo stations are undergoing a “4 change to 8” expansion. Since widening methods are used on both sides, traffic on the original section of the road will not be affected during construction. It is estimated that the expansion projects at Zheng Luo and Luo stations will take two and three years to complete, respectively, and traffic capacity will be greatly improved at that time. The balance ratio is too high, and there is a financial risk. As of the three-quarter report, the company's balance ratio was 72.3%, which is at a high level in the highway industry. In addition to the Zheng Luo and Luo renovation and expansion projects, the company is also constructing new roads such as the Zhengxin Yellow River Bridge, the Shangqiu section of the Yongbohuai Expressway, and the Zhengzhou-Kaifeng section of the Zhengmin Expressway, with a total investment of 13.6 billion yuan. The main source of funding is loans from financial institutions. After the project is completed and delivered for use, interest capitalization stops, and interest on loans will be directly included in current financial expenses. At the same time, after operation, the project will be converted to fixed assets and intangible assets, increasing depreciation, amortization expenses, and operating costs accordingly. If toll revenue is not ideal at that time, it will put greater financial risk and pressure on the company to grow its performance. Profit forecasting and ratings. We expect the company's diluted EPS in 2009 and 2010 to be 0.26 yuan and 0.28 yuan respectively. Based on the closing price of 3.84 yuan on October 30, the corresponding dynamic price-earnings ratios were 15 times and 14 times, respectively. Given the many uncertainties the company faces over the next three years, we maintain the company's “neutral” rating. Major stocks will change to Henan Communications Investment Group, or lay the groundwork for the company's future asset consolidation and restructuring. Investors can pay attention to related investment opportunities. Risk warning: The balance ratio is too high, causing financial expenses to eat up profits; uncertainty about the diversion and penetration effects of the company's Luozhu Expressway after the completion of the Anyang-Xinyang First Class Highway.