In 2017 Q1, the company's revenue was 89.07 million, up 34% year on year, net profit attributable to 17.3 million, up 49% year on year, and net profit attributable after deductions was 12.85 million, up 9% year on year. Net profit is expected to increase by 0-50% year-on-year in the first half of 2017. Revenue performance in the off-season was impressive, and gross margin remained high: Q1 achieved revenue of 89.0749 million yuan, up 34.26% year on year (8.4% growth rate in the same period last year). On the one hand, outstanding revenue performance was related to the delay effect of the recovery in real estate sales. On the other hand, thanks to channel construction initially entering a harvest period, sales scale grew rapidly; Q1 gross profit margin was 45.65%, up 0.97pct year on year. Maintaining a high level of gross margin was closely related to the company's outstanding product consumption attributes, positioning the middle and high-end, and high brand premiums. The growth rate of net profit without attribution in Q1 was 8.66%, mainly affected by the increase in the cost rate for the period. The total rate of the three fees was +5.79pct year-on-year; among them, the sales expense ratio was +5.88pct year-on-year, mainly due to the increase in advertising expenses caused by the company's enhanced brand promotion, reflecting the company's development strategy of establishing brand barriers through high investment. Q1 The sharp increase in non-recurring profit and loss stemmed from the company's investment income of 4.49 million yuan (accounting for 25.98% of net profit, 0 for the same period last year), mainly from the company's use of idle capital to purchase wealth management products. Q1 Net operating cash flow was 165 million yuan, an increase of 5170% over the previous year, mainly due to the strategic results of major engineering customers. The company received 150 million yuan in prepayment from Guangzhou Evergrande. The engineering side continued to advance, and intensive channel construction helped increase market share: in the first quarter, the company won Evergrande's three-year integrated ceiling sales contract of 500 million yuan (equivalent to 98% of 2016 revenue), and the engineering side business is expected to expand further; in April, the company and some dealers planned dealer shareholding plans to fully incentivize dealers to expand the market through benefit bundling. The company continues to be deeply involved in channel construction. Judging from the first quarter results, channel cultivation has begun to bear fruit. Investment advice: Maintain a “buy” rating: The company is one of the high-quality leaders in the integrated ceiling industry, but its market share is still small. With the increase in product replacement rate brought about by consumption upgrades and the company's advantages in brand, channel, and scale, there is plenty of room for growth in future revenue scale and market share. In the short term, the company is deeply involved in channels to increase market share of kitchen and bathroom products, and results have begun to be seen in the first quarter; in the medium term, the whole house ceiling was fully launched, and endogenous improvements are gradually showing; the 2017-2019 EPS is expected to be 2.02, 2.68, and 3.55 yuan respectively, maintaining the purchase rating. Risk warning: The real estate boom has declined sharply, and the price of raw materials has risen sharply