From January to September 2009, the company achieved operating income of 580 million yuan, an increase of 26.13% over the previous year; operating profit of 28.75 million yuan, an increase of 341.19% over the previous year; net profit attributable to owners of the parent company of 23.83 million yuan, an increase of 341.13% over the previous year; and diluted earnings per share of 0.17 yuan. In the third quarter in a single quarter, the company achieved operating income of 205 million yuan, a year-on-year increase of 21.78%; operating profit of 9.9 million yuan, loss of 5.52 million yuan in the same period last year; net profit attributable to owners of the parent company of 5.87 million yuan, loss of 720,000 yuan in the same period last year; and earnings per share of 0.04 yuan. Profits grew exponentially due to increased investment returns and lower expense ratios. The sharp increase in earnings for companies in the first three quarters was mainly due to two aspects: 1) 35% of the shares in Nanmen Market should be transferred, generating revenue of 8.26 million, increasing investment income by 6.54 million; 2) proper cost control, the cost rate decreased by 3.96 percentage points during the reporting period, increasing operating profit by 22.98 million. The negative impact was a 1.88 percentage point drop in gross margin, eating up 10.91 million in operating profit. The three contributed to profit growth of 100%, 353%, and -167%, respectively. There has been a significant improvement in overall profitability. The gross margin fell by 1.88 percentage points, mainly affected by changes in the business structure. The steel pipe business only began to be included in the report in the second half of 2008. The share of the company's steel pipe business increased sharply in the first three quarters of 2009. Since the business was still in the cultivation stage, the gross margin was relatively low, less than 5%, resulting in a decline in gross margin. The cost rate for the period decreased by 3.96 percentage points, reflecting the improvement in the company's internal management efficiency. Among them, the sales expense ratio, management expense ratio, and financial expense ratio were reduced by 0.01, 2.25, and 1.70 percentage points, respectively. Overall, there have been significant improvements in the company's operations. The third quarter showed a continuing positive trend. The gross margin for the third quarter was basically stable over the same period, while the expense ratio fell by 5.76 percentage points during the period, making the business situation continue to improve. Due to the low base, we believe that the revenue growth rate will be lowered in the later stages, while gross margin will stabilize. The main driving force for profit growth comes from cost control, and it is expected that it will continue in the fourth quarter. Earnings forecasts and ratings. The company's earnings per share for 2009-2010 are estimated to be 0.21 yuan and 0.14 yuan. Based on the recent closing price of 8.85 yuan, dynamic PE is 42 times and 63 times. The valuation is too high, maintaining a “neutral” rating. Risk warning. The steel pipe business has a greater impact on earnings and economic prosperity, which can easily cause large fluctuations in performance.