Revenue for the first three quarters of 2016 increased by 13.52%, and net profit to mother increased by 64.29%. The company released the 2016 three-quarter report, achieving revenue of 622 million yuan, an increase of 13.52% year on year; net profit to mother was 83.2618 million yuan, up 64.29% year on year, which is in the middle of the performance forecast. At the same time, the company also expects a performance growth rate of 80-110% for the full year of 2016, mainly due to the merger of Perting. Xiamen Perting completely boosted its performance. The implementation of European and American orders boosted market confidence. The company's net profit growth rate significantly exceeded the revenue growth rate during the reporting period. The main reason was that Xiamen Perting combined 80% of its remaining shares and boosted the quality of profits. Xiamen Perting's revenue reached 257.6720 million yuan, contributing nearly 41% of total revenue; contributing 42.5571 million yuan to net profit, accounting for 51.10%. We estimate that the total number of contracts currently being executed by Xiamen Perting is about 130 million US dollars. In September of this year, Pe Ting and Formosa Plastics Group signed two business contracts totaling 30.5 million US dollars, achieving continuous business expansion in developed European and American countries and enhancing market confidence. Perting's overseas orders are denominated in US dollars, and are expected to benefit from the depreciation of the RMB and slightly increase the reporting rate. Two equity investment funds have been set up, and the merger and acquisition company to promote biomass cogeneration projects and environmental protection targets announced that it intends to use 3D Wire Investment as a limited partner, and that 3D Wire Investment will establish a 3D Sianjie Fund with CITIC Trust and Anjie Asset, respectively, and a 3D Silk Huaxin Fund with Huaxin Kuanzhong, Guotai Junan, and 3D Wire Investment. Both funds are in the form of double GP, with a scale of 400 million yuan and 480 million yuan respectively, to invest in the construction of Xixia County biomass cogeneration projects and mergers and acquisitions of environmental protection standards, respectively. We believe that the company's flexible use of financing methods is expected to further promote the expansion of the environmental+clean energy sector. Competition for air treatment has intensified, and the traditional main business of environmental protection has declined due to various factors such as the market environment. The company's filter revenue decreased by 36.37% compared to the same period last year, and profits fell sharply. We believe that as ultra-low emission transformation enters an aggressive stage, market competition becomes more intense, and the company's atmospheric treatment business revenue is likely to fluctuate greatly. Against the backdrop of a decline in the number of hours used for thermal power, the replacement cycle of filter materials may also gradually increase, further affecting the company's performance. Optimistic about Perting's long-term development space, maintaining the “buy” rating, considering that the atmospheric treatment business has declined a lot, we lowered the net profit from 2016 to 2018 to 1.42,185,255 million yuan (the previous one was 1.61,219.284 million yuan), corresponding to the dynamic PE 51,39,28 times in line with the company's performance guidelines. The company's acquisition of Pertingding increased the cost to 17.71 yuan/share, which has solid support compared to the current stock price. Optimistic about Perting's business prospects and the company's clean energy sector layout, maintaining a “buy” rating. Risk warning: Revenue recognition was less rapid than expected, and the progress of receiving orders fell short of expectations.