From January to September 2010, the company achieved operating income of 1.145 billion yuan, an increase of 36.88% over the same period last year; operating profit of 82.12 million yuan, an increase of 48% over the same period last year; and net profit of 74.85 million yuan belonging to the owner of the parent company, an increase of 119.3% over the same period last year. Of this total, the operating income in the third quarter was 394 million yuan, an increase of 9.9% over the same period last year.

The operating profit was 4.5 million yuan, down 13.2% from the same period last year; the net profit belonging to the owner of the parent company was 2.78 million yuan, down 18.3% from the same period last year; EPS was 0.009 yuan.

Both gross profit margin and period expense rate decreased compared with the same period last year. In the first three quarters, the company's comprehensive gross profit margin was 11.6%, an increase of 1.2 percentage points over the same period last year. During the period, the expense rate was 10.1%, down 0.7 percentage points from the same period last year, of which the sales expense rate dropped 0.2 percentage points to 4.2%; the management expense rate was the same as the same period last year, at 3.2%; and the financial expense rate decreased by 0.5 percentage points to 2.4%.

The loss of asset impairment was 31.68 million yuan, compared with-790000 yuan in the same period last year. It is mainly due to the impairment loss of the goodwill formed by the acquisition of subsidiaries.

Investment income increased by 65.64% over the same period last year. The investment income of the company in the first three quarters was 99.42 million yuan, an increase of 65.64% over the same period last year, accounting for 132.83% of the net profit belonging to the owner of the parent company. Mainly due to the company's transfer of 100% equity interest in Zhangzhou Jingda Land Comprehensive Development Co., Ltd., the investment income is 101 million yuan.

Acquire water supply companies to improve economies of scale. Zhangpu Water, a subsidiary of Zhangzhou Development Water Group, acquired all the assets of Zhangpu County Water supply Company at a price of 45 million yuan. After the acquisition, Zhangpu County Water supply Corporation stopped carrying out water management in the existing water supply area, and Zhangpu Water Affairs took over water management. This acquisition will help to open up new channels for water value-added and achieve economies of scale. The company's water revenue in the first half of the year is 48.91 million yuan, and it is expected that the annual water revenue will reach 100 million yuan.

Profit forecast and risk hint. It is estimated that the company's EPS from 2010 to 2012 will be 0.27,0.28,0.34 yuan respectively. Based on the closing price of 8.63 yuan on October 26th, the corresponding dynamic PE will be 32 times, 31 times and 27 times respectively, maintaining the company's "neutral" investment rating.