Key investment points The company achieved operating income of 4.665 billion yuan in 2016, an increase of 16.32% over the previous year. Revenue growth was mainly due to explosive growth in overseas business. General engineering contracting, engineering design, and decoration construction achieved revenue of 3.118 billion yuan, 13 billion yuan, and 1,452 billion yuan respectively, with year-on-year increases of 106.04%, -36.39%, and -40.85%, respectively, and additional medical business revenue of 82 million yuan. Sufficient overseas orders drove explosive growth in the engineering general contracting business; domestic and overseas revenue was 1,479 billion yuan and 3.186 billion yuan respectively, up -39.30% and 102.42% year-on-year, respectively. Overseas revenue doubled year-on-year, with the company's sufficient orders carried over In terms of revenue, overseas revenue is expected to continue to grow at a high rate. In 2016, the company achieved a comprehensive gross profit margin of 25.84%, an increase of 4.77% over the previous year, mainly due to a sharp increase in the share of overseas business with high gross margin; it achieved net profit of 10.12%, an increase of 1.49% over the previous year. The gross margins of general engineering contracting, decoration engineering construction, engineering design, and medical services were 30.07%, 16.31%, 50.75%, and 29.32% respectively, and the gross margin of general engineering contracting increased dramatically; domestic and overseas gross margins were 29.87% and 17.17% respectively. The gross margin of overseas business was significantly higher than domestic. In the future, as the share of overseas revenue increases, the company's gross margin is expected to continue to increase. Furthermore, the share of sales tax and surcharges decreased by 1.78% year-on-year, mainly due to “business reform and growth.” The company's share of expenses during 2016 was 10.11%, up 4.55% from last year, mainly due to the increase in management rates and financial rates. The management expense ratio increased 2.88% year over year, mainly due to the company's rapid business expansion; the financial expense ratio increased 1.36% year over year, mainly due to increased borrowing. In 2016, the company's asset impairment losses were 170 million yuan, an increase of 53.15% over the previous year, mainly due to a nearly 50% year-on-year increase in bad debt losses; the share of revenue increased 0.87 percent over the previous year; net operating cash flow per share in 2016 was -0.99 yuan, a decrease of 0.81 yuan/share from last year. Profit forecast and rating: The company's EPS for 2017-2019 is estimated to be 0.43 yuan, 0.62 yuan, and 0.82 yuan, respectively. The corresponding PE is 21.5 times, 14.9 times, and 11.3 times, respectively, maintaining the company's “buy” rating. Risk warning: macroeconomic downturn, overseas market risks, project progress falling short of expectations