We predict that the company's corresponding EPS for 2016-2018 will be 0.18 yuan, 0.22 yuan, and 0.26 yuan, respectively, and the corresponding PE will be 57 times, 47 times, and 41 times, respectively. The company has core technical advantages in the fields of automation and informatization, which has become the main reason for the sharp increase in performance. The oil and gas service and smart industry layout is growing rapidly and has become a new profit growth point. The company has adopted the BT model to expand its business. It is currently seeing initial results. We are optimistic about the company's future growth and maintain the “recommended” rating. Performance increased dramatically, mainly due to the increase in automation business: in the first three quarters of 2016, the company achieved operating income of 314 million yuan, an increase of 20.59% over the same period last year, and realized net profit attributable to the parent of 8541 million yuan, an increase of 31.83% over the previous year. Among them, in the third quarter of 2016, operating income was 188 million yuan, an increase of 46.34% over the same period last year, and net profit of 19.5882 million yuan, an increase of 27.31% over the previous year. The sharp increase in performance was mainly due to a steady increase in revenue from the automation business. The company has successively won bids for the SDIC Xinjiang Robubo Potash Co., Ltd. water treatment plant project, Daiwa gas pipeline project SCADA and communication system project, and the Daning - Jixian block 200 million square meter rolling test ground collection and transportation project. The winning bid amounts were 1 million yuan, 4.4897 million yuan and 3.46 million yuan respectively, further enhancing the company's market competitiveness in related new fields. Develop oil and gas services and smart industries, and lay out new profit growth points: The company can now provide comprehensive oil and gas field services such as oil and gas field ground process equipment design and manufacturing, drilling completion and fracturing integration, oil field chemicals, oil and gas field water treatment, etc., and the competitiveness of oil field services has been effectively enhanced. During the reporting period, integrated drilling and fracturing service projects in Xinjiang and Shanxi were successfully completed, and oil and gas field chemicals and oil field environmental protection business is being actively carried out. The company will continue to expand its oil and gas service capabilities vertically and create new profit growth points on the basis of integrating advanced technology and resources. During the reporting period, the company's smart industry business grew significantly, and new projects such as smart cities (building automation), smart grain depots, and smart water services continued to be implemented, extending the scope of the company's business services and effectively improving service capabilities. The BT model saw initial results in expanding the business, and the investment project developed well: During the reporting period, the wholly-owned subsidiary Hangzhou Security Control won the bid for the company's first BT model project, the “Yiyang Datong Lake Central City Water Plant Construction Project”, with a bid amount of 19.22 million yuan, which has accumulated valuable experience for the company in the fields of automation, oil and gas and smart industries. The business of the company's participating subsidiaries is running well. Among them, Hangzhou Xujian Technology is officially listed on the new third board, and Hangzhou's intelligent driverless floor scrubber iScrubbot300 won the “2015-2016 China Intelligent Service Robot Showlist” and the “Most Promising Commercial Robot” award. Risk warning: The speed and scale of investment in the petroleum industry fell short of expectations, and the progress of the smart industry fell short of expectations.