Event: The company published its 2016 third quarter report on October 29, 2016. In January-September, the company achieved operating income of 753 million yuan, an increase of 58.42% over the same period last year; net profit of 69.495 million yuan, an increase of 71.74% over the same period last year. Looking at the third quarter alone, the company achieved operating income of 330 million yuan, an increase of 31.12% over the previous year, and realized net profit of 33.2012 million yuan, an increase of 12.10% over the previous year. The increase in operating income was mainly due to the company's acquisition of Huaxin Electromechanical in July 2015, which significantly improved the company's performance after the announcement. Specifically, in January-September, the company's consolidated gross margin was about 30.82%, up slightly from the same period last year, while the consolidated gross margin for the third quarter was about 31.67%, down from the same period last year. The company confirmed certain asset impairment losses in the third quarter and experienced asset impairment losses of about 278.677 million from January to September, which is a significant increase over the same period last year. The main reason is the acquisition of Huaxin Mechatronics and Merger. At the same time, the company increased tax rebates for embedded software, and non-operating income increased by about 11.841 million over the same period last year. The overall business situation of the company is stable. The company revealed in its quarterly report that net profit from the parent company in 2016 is expected to increase by 23%-53% compared to last year. Lay out three-dimensional parking equipment and continue to promote upgrades. The company announced on May 24 that it has invested in the establishment of Tianqiao Liheng, targeting urban public parking solutions. Also, on July 22, it was announced that the holding subsidiary won the bid for the three-dimensional parking garage project. The project will have about 400 parking spaces, no less than 4 sets of lift systems, and no less than 12 entrances and exits. The total amount of the winning project reached 44.987 million. At average prices, it is a relatively high-end parking equipment, reflecting the company's strength in the field of three-dimensional parking garages. The progress of this project and the development of Amanohashi Tachiyo are expected to gradually improve the company's performance. I am optimistic about the company's high-end equipment layout. Since 2015, the company has developed an active layout around high-end equipment: acquiring Huaxin Electromechanical to broaden the range of products and markets while improving the company's overall technical level; entering the wind power business in 2014 and producing stable performance in 15 and 16; the company's subsidiary, Eurico, has leading domestic non-ferrous smelting ground equipment technology and has promising development prospects; the company has laid out the new energy sector by investing in Inbol and participating in the Yipo New Energy Industry Investment Fund. The company is positioned in high-end equipment industries such as wind power, new energy, and three-dimensional parking equipment, etc., and has gradually realized its performance and achieved continuous transformation. We continue to be optimistic about the company's transformation and upgrading. Profit forecast. The company's performance is stable, and various high-end equipment layouts are progressing in an orderly manner, which is expected to continuously improve the company's performance. We expect the company's net profit to reach 1.19, 1.49, and 172 million yuan in 16-18, corresponding to fully diluted EPS of 0.14, 0.18, and 0.20 yuan. Combined with the average valuation of comparable companies, we gave the company a price-earnings ratio of 42 times in 2017, a target price of 7.56 yuan, and a rating for increasing holdings. Risk warning: There is a risk of market fluctuations, and the progress of transformation and upgrading has not met expectations.