From January to September 2009, the company achieved operating income of 506 million yuan, an increase of 23.3% over the previous year; operating profit of 96 million yuan, an increase of 25.2% over the previous year; net profit attributable to owners of the parent company was 91 million yuan, an increase of 10.1%; and EPS of 0.28 yuan. Develop markets and drive revenue growth. During the reporting period, the company stepped up its efforts to expand the electricity market, which became the main reason for the relatively rapid increase in the company's operating income. At the same time, the company's hotel services, construction and installation businesses have also achieved good growth. However, in terms of growth rate, compared to the first half of the year, the growth rate in the third quarter fell 5.64 percentage points to 19.86%. We believe this was mainly affected by last year's high base figure. We expect the company's revenue growth rate to decline slightly in the fourth quarter. Operating costs have increased and gross margin has declined. During the reporting period, due to a decrease in the company's own electricity generation, the purchase of electricity from outside increased, which led to a decrease in gross margin. In the first three quarters, the company's operating costs increased 42.79% year on year, and gross margin fell 9 percentage points year on year to 31.6% year on year. Among them, gross margin for the third quarter fell 9.7 percentage points year on year to 39.2% year on year. We expect that the gross margin level for the whole year may have declined markedly compared to the same period last year. The three cost rates have been drastically reduced, and the net interest rate has been raised. In the first three quarters, the company's three expenses totaled 69.87 million yuan, a year-on-year decrease of 24.3%, and the expense ratio was 13.8%, a year-on-year decrease of 8.7 percentage points. In terms of specific expenses, 1. Benefiting from a standardized hotel cost accounting model, sales expenses fell 54.87% year over year; 2. Benefiting from adjustments to loan size and interest rates, financial expenses fell 68.25% year over year; 3. Management expenses fell 12.9% year on year. The three cost reductions directly increased the company's net profit by about 19.06 million yuan. We expect the company to maintain a good level of cost control in the fourth quarter. Non-recurring profit and loss increased significantly. During the reporting period, on the one hand, the company's asset impairment losses decreased by 1612.86% year-on-year to -854,800 yuan due to the recovery of water charges for bad debts already charged in the previous period; on the other hand, the company's investment income increased by 41.08% to 15.87 million yuan. Valuation and investment analysis. We expect the company's EPS for 2009, 2010, and 2011 to be 0.32 yuan, 0.32 yuan, and 0.33 yuan respectively. Based on the closing price of 7.14 yuan on October 26, the corresponding dynamic price-earnings ratios are 22 times, 22 times, and 22 times, respectively. The valuations are quite reasonable. Considering the poor growth, we maintain the company's “neutral” investment rating. Risk warning. 1. Uncertainty in water conditions; 2. Decline in demand.