Matters: The company announced its 2016 three-quarter report. The first three quarters achieved operating income of 1.78 billion yuan, an increase of 87.9% over the previous year, and net profit attributable to shareholders of listed companies of 10.635 million yuan, an increase of 109.2% over the previous year, achieving an EPS of 0.0069 yuan, in line with expectations. Ping An's view: Performance continues to improve, and advance payments are sufficient: During the period, the company achieved revenue of 1.78 billion yuan, an increase of 87.9% over the previous year, and net profit of 10.635 million yuan, an increase of 109.2% over the previous year. The share of business taxes and surcharges in revenue fell 27.8 percentage points to 9.1% year on year, and the impact of taxes and fees gradually weakened. Gross margin fell 27 percentage points to 17.7% year on year due to differences in settlement structures; the period fee rate fell 4.34 percentage points to 9.4%. Judging from the amount of cash received from the sale of goods and the provision of labor services, the first three quarters achieved a real estate contract amount of 2.16 billion yuan, an increase of 49.3% over the previous year, and advance payments at the end of the period increased 50.7% from the beginning of the year to 1.09 billion, laying the foundation for future performance growth. The balance ratio after excluding advance receipts at the end of the period was 69.1%, and the coverage ratio of monetary funds to short-term liabilities was 111.3%. The financial situation was relatively stable. Strengthen the integration of shareholders' resources and lay out cultural and creative industrial parks: During the period, the company actively promoted cooperation with China Power Construction member enterprises and strengthened the use of internal land resources. The company signed a “Memorandum of Cooperation” with Hubei Electric Power Construction No. 1 Engineering Company. The two sides reached a cooperation agreement on the renovation and utilization of the resources of the old plant owned by the Electric Power Construction Company to build an industrial park for cultural creativity and innovative industries. Previously, the company has signed a cooperation agreement with Chinese and Indian Culture. In the future, the South provides operating capacity, China and India provide creative design, and China Power Construction provides land resources such as plants, etc., and it is worth looking forward to the joint construction of a cultural industrial park. The PPP expansion model is worth looking forward to. The target of the central enterprise reform is that after the power construction real estate became a real estate listing platform under central enterprises at the end of 2012, the company Huaju became a real estate listing platform for central enterprises. China Power Construction has a large number of urban infrastructure projects across the country. Relying on China Power Construction's urban rail transit PPP projects in the future, it is worth looking forward to promoting the business layout of major urban transportation nodes. At the same time, as the company is the only real estate listing platform under Power Construction, there is room for imagination regardless of asset integration or capital operation in the context of central enterprise integration. Maintain a “Recommended” rating. The company's 2016-2017 EPS is expected to be 0.22 yuan and 0.32 yuan respectively, and the current stock price corresponding to PE is 26.1 times and 17.7 times, respectively. The company's main real estate business benefits from the recovery of the Wuhan regional property market and is actively exploring the layout of cultural and creative industries; relying on the resources of the majority shareholder Power Construction Group, the PPP expansion model is worth looking forward to; at the same time, in the context of central enterprise integration, as the only real estate listing platform in the power construction department, there is a lot of room for imagination in asset integration and capital operation, maintaining a “recommended” rating. Risk warning: Performance and sales volume fell short of expectations; cultural industry expansion fell short of expectations.