incident. In the first three quarters, the company achieved operating income of 6.89 billion yuan, an increase of 84.3% over the previous year; net profit attributable to shareholders of listed companies was 795 million yuan, an increase of 1.90 times over the previous year; and basic earnings per share of 0.39 yuan. In the first three quarters of 2016, the company's revenue increased by 84%, driven by a sharp increase in carry-over; due to factors with high carry-over gross margin, the net profit growth rate increased 1.9 times. At the end of the third quarter of 2016, the company added 39,215.62 square meters of real estate reserves. In the third quarter of 2016, the company started a new construction area of 1,1352 million square meters, a completed area of 203,200 square meters, a sales area of 448,900 square meters, and a sales amount of 4.640 billion yuan. In September 2016, the company participated in the subscription of Livzon Group to increase the number of shares by 14.9 million shares. In September 2016, the company obtained 39,200 square meters of residential land in Nanjing. Investment advice. The dual concept of the Fujian Free Trade Zone and the “Silk Road”, and the “two-wheel drive of industry and capital” is worth looking forward to. The company's development model is in line with the direction of new urbanization construction, and is an important target of the Fujian Free Trade Zone and the “Silk Road” theme. Sales in Daming City are expected to benefit from the tax and financial benefits associated with the Free Trade Zone. The East Lanzhou Science and Technology City project is located in the core area of the “Silk Road Economic Belt”. Currently, the company has clearly created a two-wheel drive for the real estate sector and the financial sector. The company clearly stated that it is actively exploring new industries such as financial services, investment and trade, warehousing and logistics, and big culture and health. We expect the company's 2016 and 2017 EPS to be 0.48 yuan and 0.63 yuan respectively, and the corresponding RNAV is 13.5 yuan. Considering the company's strong transformation, we used 1.1 times RNAV, or 14.85 yuan, as the company's target price for the next six months to maintain the “buy” rating. Risk warning: The industry faces two major risks: interest rate hikes and policy regulation.