The settlement of the high-margin Qinglin Bay project showed that the results for the first three quarters increased nearly 200% on the evening of October 25. On the evening of October 25, the company announced the 2012 3rd quarter report, which achieved operating income of 2,652 billion yuan from January to September, an increase of 29.70% over the previous year; realized net profit attributable to shareholders of listed companies was 357 million yuan, a sharp increase of 196.16% over the previous year; and realized earnings per share of 0.247 yuan. During the reporting period, the increase in the company's net profit was far ahead of the increase in operating income, mainly due to the fact that the Qinglin Bay (Phase 4-5) project, which had a high gross margin, achieved partial settlement in the third quarter. Sales in Qinglin Bay have continued to improve. Since the end of the second quarter, sales have been close to 1.3 billion yuan. Since the end of the second quarter, the sales amount of the company's main projects has been around 1.46 billion yuan, of which the sales amount of the Qinglin Bay project (phase 4-7) is about 1.28 billion yuan, and the sales amount of the Dongcheng Mingyuan project is about 180 million yuan. In addition to the rest of the company's main sales project in Qinglin Bay (phase 6-7) in the second half of the year, Villa Town Phase 2 is also expected to be listed in the fourth quarter. At that time, the company's sales potential is still worth looking forward to. The good sales performance of commercial housing in the third quarter boosted the stability of the company's capital chain. As the company's commercial housing sales performance continued to improve in the third quarter, the company's capital chain became more stable, and the financial situation became healthier. The net cash flow from the company's operating activities in the third quarter was 696 million yuan, an increase of 112% over the second quarter of 328 million yuan, and an increase of 823 million yuan over the third quarter of last year from negative to positive. Maintaining the “buy” investment rating, we expect the company's EPS for 2012-2014 to be 0.64 yuan, 0.82 yuan, and 1.09 yuan, respectively, and the corresponding dynamic PE is 9.9 times, 7.7 times, and 5.8 times, respectively. We maintain the company's “buy” investment rating for the following reasons: (1) the company's performance in 2012 was basically highly locked; (2) the company's commercial housing sales performance was flexible in 2012; (3) the majority shareholders' invisible land reserves were large.