Core view: The company reported a growth rate of 64.29% for the third quarter of 2016. The filter business declined significantly due to market influence. The company announced that it achieved net profit of 83 million yuan in the third quarter of 2016, an increase of 64.29% over the previous year. Perting contributed 43 million yuan to net profit, accounting for 51.10%. Due to various factors such as the market environment, filter business revenue declined 36.37% year over year. Perting's US order has entered the execution period. Roca has completed its performance promise, and the company announced that Perting executed orders totaling US$153 million. Among them, the first order in the US market (production and installation project related to T1 and T3 modular pipe racks) totaling 30.5 million US dollars has already entered the execution stage, and it is expected to contribute most of the performance next year. Roca executed order of 115 million yuan and is expected to contribute about 40 million yuan in profit. We believe that Loca's performance promise is worry-free (16-year performance commitment of 41 million yuan). Some of the supporting financing subscribers withdrew, and the supporting financing (555 million yuan for a three-year period, 17.77 yuan/share) to establish an investment fund to integrate industrial resources companies has received a pledge of 200 million yuan. The Symbiosis 1 Fund did not pay on time and withdrew from this subscription. In addition, the company announced the establishment of the 3D Sianjie Equity Investment Fund (pledged amount of 400 million yuan) and the 3D Sihuaxin Equity Investment Fund (pledged amount of 480 million yuan) to be used for biomass cogeneration projects in Xixia County and to invest in environmental protection enterprises related to the company's strategy, respectively. The company is committed to building a comprehensive environmental protection service provider for flue gas treatment, and the establishment of an investment fund will help the company integrate industrial resources. Perting brought about high growth elasticity, maintaining a “buy” rating of 0.42 yuan, 0.59 yuan, and 0.75 yuan for 16-18 EPS, respectively. The sharp increase over the past 16 years was due to the merger of Xiamen Perting. Perting and Roca can form synergy with the company in many ways to share domestic and foreign markets. We are optimistic that Perting will follow the expansion of Formosa Plastics Group in the future, and that orders and performance will grow with high elasticity. Risk warning: risk of mergers and acquisitions, new business development falls short of expectations