Key investment events: Stanley released its 2016 annual report, achieving operating income of 6.229 billion yuan, a year-on-year decrease of 11.53%; net profit of 513 million yuan, a year-on-year decrease of 17.36%. Based on the current total share capital of 1,157 million shares, earnings per share were realized at $0.44, and net operating cash flow per share was $0.76. At the same time, the company released its 2017 quarterly report, achieving operating income of 1,354 billion yuan, a year-on-year decrease of 4.04%; net profit of 79.6 million yuan, a year-on-year decrease of 47.42%. Furthermore, the company expects net profit attributable to shareholders of listed companies from January to June 2017 to be 264-378 million yuan, with a year-on-year change of -30% to 0%. Maintain a “buy” rating. In 2016, China's compound fertilizer industry continued to be sluggish. By optimizing the product structure, actively developing markets, and developing agricultural services, Stanley achieved a steady increase in annual compound fertilizer product sales. The company's annual compound fertilizer sales volume was 2,5581 million tons, up 5.31% year on year, while the company's revenue declined year on year during the same period, mainly due to the combined effects of the reinstatement of value-added tax (starting September 1, 2015), the year-on-year decline in compound fertilizer prices, and changes in the company's product structure. The company's comprehensive gross margin in 2016 increased 1.18 percentage points year on year to 22.89% year on year, but the absolute gross profit amount decreased by 102 million yuan, and the average gross profit per ton decreased; during the same period, the company's expenses increased 2.43 percentage points year on year to 14.27%. The decline in product tonnage profit and the slight increase in expenses were the main reasons for the year-on-year decline in the company's performance in 2016. In the first quarter of 2017, the domestic compound fertilizer market continued to be sluggish. The company's compound fertilizer sales volume declined year on year, and operating income fell 4.04% year on year; comprehensive gross margin was 21.41%, down 4.67 percentage points year on year; period expenses increased 1.48 percentage points to 15.11% year on year, and performance declined significantly year over year. Stanley is one of the leading enterprises in China's compound fertilizer industry. At the same time, the company is actively laying out and improving the entire agricultural planting service industry chain, opening up space for long-term development. We expect the company's EPS from 2017 to 2019 to be 0.47, 0.54, and 0.64 yuan respectively, maintaining the “buy” investment rating. Risk warning: the risk that the compound fertilizer market will continue to be sluggish; the risk that agricultural service expansion progress is slower than expected.