Matters: In the first three quarters of 2012, Renzhi Oil Services achieved operating income of 384 million yuan, up 24.2% year on year; total profit of 54.31 million yuan, up 21.44% year on year; net profit attributable to shareholders of listed companies was 44.82 million yuan, up 18.87% year on year. The basic earnings per share for the reporting period was $0.39. The main point of view: The U annual plan should be completed; long-term development still depends on regional breakthroughs. In its 2011 annual report, the company proposed a business target of achieving operating income of 680 million yuan and total profit of 100 million yuan by 2012. As of the first three quarters, the completion rates of the company's operating income and total profit were 56% and 54%, respectively. This means that the company's total operating income and profit in the fourth quarter should reach 296 million and 46 million, with year-on-year increases of 42% and 7%. The company's performance has been clearly seasonal over the years. The fourth quarter settlement volume was large, and the operating income for both 2010 and the fourth quarter of 2011 was around 200 million yuan. Moreover, the company's quarterly performance growth rate also hit 40%. The company's three-quarter report did not propose a revised annual plan; we expect the company's revenue this year to reach around 680 million yuan. However, considering the international distribution of oil and gas resources, if oil service companies are to achieve long-term stable development, the scope of their activities should be on the world stage. Although Renzhi Oil Service is actively expanding regions such as northwest China and northern China, it will take time to cover the whole country before it can truly take off internationally. u The wave of lifting the ban may suppress stock prices in the short term. On November 5, the company will list 52.3371 million shares, accounting for 182.93% and 45.74% of tradable shares and total share capital, respectively. The unbanned shareholders are the company's 93 natural person shareholders and corporate shareholders other than those acting in concert, Mianyang Boye, Mianyang Yiyang, Mianyang Zhiyu, Mianyang Haojing, Deyang Xinsheng, and Yunnan Forst. Of these, 93 natural person shareholders accounted for 35.27% of the total share capital. However, judging from the company's stock reform process, most of these natural person shareholders are company employees, so it is expected that the wave of lifting the ban will not fatally suppress stock prices. u Pay due attention to cash flow risk. The net cash flow generated by the company's operating activities after listing has been negative for a long time. Up to now, this situation has not improved. Although the company's announcement stated that this was due to more procurement payments and higher labor costs for construction projects, long-term negative effects have increased the company's risk. u Profit forecast. We believe that the company will achieve growth of more than 30% in 2012, and earnings per share from 2012 to 2013 were 0.81 yuan and 0.98 yuan respectively, giving it a “neutral” rating.