The decline in performance was affected by the performance of Guangfa Securities, and various main businesses were developed. In line with expectations, the company released its 2016 three-quarter report and achieved operating income of 1,004 billion yuan, a year-on-year decrease of 14.25%; net profit of 729 million yuan, a decrease of 39.77% over the previous year. Changes in revenue and net profit were in line with expectations. The decline in the company's revenue is mainly due to the water business. The impact of climate has led to a decrease in water scheduling and a decrease in water sales volume; 2) the impact of the increase in business. The main reason for the year-on-year decline in net profit was the year-on-year decline in investment income in GF Securities. Net cash flow from operating activities in the third quarter was 286 million, up 33.99% year on year, mainly due to an increase in cash received from the sale of goods and the provision of labor services, and a decrease in cash received from purchasing goods and receiving labor payments. In August, a sewage PPP project was signed in Huangpu Town, Zhongshan City, and the company signed the “Zhongshan Huangpu Town Sewage Treatment Plant Network Integrated PPP Project Franchise Agreement”. The investment amount of the project is 263 million yuan, the total plan is 100,000 tons, and consists of TOT and BOT parts. The cooperation period is 25 years, and the unit price for sewage treatment services is 1.726 yuan/cubic meter. The project boosted the company's performance and helped promote the “sewage game of chess” in Zhongshan City; it was also the company's first PPP project, accumulated experience, filled gaps, helped the company expand other sewage PPP projects, and opened up more market space. Water services, farmers' markets, waste incineration, and passenger transport businesses have all progressed 1) The company currently has a design day water supply capacity of 2.35 million cubic meters, 610,000 cubic meters of sewage per design day, accounting for 80% of Zhongshan City and 50% of Jining; total sewage accounts for 35% of Zhongshan City and 60% of Jining, and water costs are expected to rise; 2) The agricultural trade and agricultural market business already has 31 comprehensive farmers' markets, 9,000 businesses, spread across 18 townships, and wholesale business accounts for 70% of the city's total transaction volume of 3 billion billion Above, and towards “actively cultivating business formats and developing with customers” The transformation of the market business model; 3) Tianyi Energy's waste incineration project is 970 tons/day, with a power generation capacity of about 140,000 kilowatts per day or more, an increase of about 60 million kilowatts per day; 4) passenger transport services to Hong Kong Airport, and there is a check-in service, so it has brought about a certain increase in group visitors. Follow-up key tasks 1) There is still room for integration of sewage projects, focusing on the local area of Zhongshan City; 2) Tianyi Energy will launch the second phase to make preliminary preparations and seek independent construction of the company; 3) find high-quality targets and strengthen project communication in the direction of environmental protection fields such as sewage, solid waste, hazardous waste, food waste, etc.; 4) focus on participating in PPP and strengthening ties with local governments. All main businesses of Zhongshan Public Utilities have been developed, giving “increased holdings” ratings to companies that actively develop their main business. They have made progress in various areas such as water supply, sewage, farmers' market business, waste incineration, and passenger transport services. Through the acquisition of engineering capabilities, the company has made continuous progress towards a comprehensive environmental service provider and reduced its dependence on investment income; at the same time, the company is also actively promoting equity incentive mechanisms to provide employee motivation to work. We gave Zhongshan Utility an “increase in holdings” rating. The 2016-2018 EPS is expected to be 0.67/0.74/0.82 yuan. Risk warning: There is a risk of performance fluctuations due to the large share of investment returns.