Event: The company released its 2012 three-quarter report. In the first three quarters, the company achieved operating income of 2,652 billion yuan, an increase of 29.7% over the previous year; net profit attributable to shareholders of listed companies was 357 million yuan, an increase of 15.1% over the previous year; and basic earnings per share of 0.25 yuan/share. Basically in line with expectations. Comment: Carry-over accelerated in the third quarter. In the third quarter, the company achieved operating income of 1.19 billion yuan, an increase of 108.5%; net profit attributable to shareholders of the parent company was 194 million yuan, an increase of 196.2%; gross profit margin of 41.86%, an increase of 11.09 percentage points over the previous month; and a return on net assets of 5.57%, an increase of 3.99 percentage points over the previous month. Investment returns have declined sharply. In the first half of the year, the company achieved an investment income of 888,000 yuan, a year-on-year decrease of 98.43%. In the same period last year, the company sold shares in Zhejiang Yuli Electric Co., Ltd. and its investment in Ningbo Fuda Electric Co., Ltd. from the cost method to the equity method and used the fair value model to measure investment income. However, there was no income of a similar nature in the current period, so investment income declined sharply. Short-term financial pressure remains. At the end of the reporting period, the company's balance ratio reached 79.66%, an increase of 0.53 percentage points over the beginning of the year; as of the end of the reporting period, the company held 2.44 billion yuan in cash, which was lower than the sum of short-term loans and long-term liabilities maturing within one year of 3.92 billion yuan. Short-term financial pressure still exists. Profit forecast: We maintain the company's profit forecasts for 2012-2014 of earnings per share of 0.59 yuan, 0.88 yuan, and 1.06 yuan. The price-earnings ratio corresponding to the closing price on October 25, 2012 (6.27 yuan) is 11 times, 7 times, and 6 times, respectively, maintaining the “increase in holdings” rating. Risk factors: The strength and duration of industry regulation policies has exceeded expectations.