Key investment events: The company disclosed the 2017 quarterly report. Q1 achieved operating income of 89.07 million yuan, a year-on-year increase of 34.26%, net profit of 17.3 million yuan, a year-on-year increase of 48.69%, net profit of 12.85 million yuan after deduction of net profit of 12.85 million yuan, an increase of 8.66% year-on-year, and basic earnings per share of 0.20 yuan. Comment: The channel strategy is beginning to bear fruit, and Q1 revenue is growing rapidly. Benefiting from the positive trend in downstream real estate demand and the continued results of company-level marketing and channel expansion, the company's Q1 revenue growth was impressive, with a year-on-year increase of 34%, continuing the high growth in Q4 last year. It is expected that retail sales growth will continue to maintain a positive trend in the future, compounded by the progress of engineering businesses such as Evergrande, etc., and the company is full of confidence that revenue will accelerate throughout the year. Short-term profits have slowed due to cost-side expansion, so there is no need to worry in the medium term. The company's cost rate for the Q1 period was 28.72%, an increase of 5.8 pct over the previous year. Among them, the sales expenses rate increased the fastest, with a year-on-year increase of 5.9 pct, mainly due to the company's increased marketing efforts and the rapid expansion of advertising expenses and consulting service fees. As a result of short-term market expansion, profit growth is lower than revenue growth, but as market share increases, the expense ratio will usher in a downward inflection point, so there is no need to worry too much. Q1. Wealth management product earnings confirmed that they contributed 4.49 million to investment income, resulting in a faster growth rate of net profit than net profit growth after deducting non-deductions. Investment advice: The company is the first stock in the integrated ceiling industry. In recent years, it has been diligently working on multiple dimensions of brand, channel, product, and organizational structure. Market competitiveness has continued to improve, and performance is expected to continue to exceed expectations under the all-material and omni-channel strategy. The retail and engineering businesses are flying hand in hand, and the growth momentum is strong. Dealer shareholding is on the agenda, and ties with high-quality dealers are closer, ensuring the steady progress of retail business; the engineering business starts with Evergrande, and cooperation with other real estate developers will also accelerate in the future, adding new impetus to the company's growth. The 2017-2019 EPS is expected to be 2.02, 2.89, and 3.64 yuan respectively, maintaining the “buy” rating. Risk warning: Real estate falls beyond expectations, industry competition intensifies