In 2016, more than 2 billion yuan of contract orders were added (excluding PPP), new cooperation agreements were signed over 6.5 billion yuan, total annual orders exceeded 8.5 billion yuan, company orders are plentiful, and future performance releases can be expected. Up to now, the company has signed 7 contract orders this year (excluding PPP projects), with a total project volume exceeding 2 billion yuan, equivalent to 120% of the 15-year operating income, and plenty of orders in hand; in addition, the amount of orders signed for the cooperation framework exceeds 6.5 billion yuan, which is expected to be converted into construction contracts and confirmed revenue. Profit forecast and valuation: The company's performance growth for the first three quarters is in line with expectations, so we lowered the company's 16-18 EPS forecast from 0.45, 0.68, and 0.93 yuan to 0.37, 0.57, and 0.80 yuan, corresponding to 53/35/25 times PE. We remain firm in our optimism about the future development of the company. Risk warning: National PPP policy changes; contract execution time and ratio are lower than expected.