Key investment matters: In the first three quarters of 2016, the company achieved operating income of 561 million yuan, an increase of 11.77% over the previous year; net profit after returning to the mother was 14.5 million yuan, a year-on-year decrease of 21.55%. The company's basic earnings per share are 0.05 yuan, and the company's performance is in line with our expectations. Ping An's view: IDC boosted the main business forward steadily and won the telecommunications and Unicom orders: during the reporting period, it achieved operating income of 561 million yuan, an increase of 11.77% over the previous year; net profit after returning to the mother was 14.5 million yuan, down 21.55% from the previous year. During the reporting period, the company strengthened marketing and market expansion, and the main business sales orders were executed well. The parent company's operating income and gross margin both increased compared to the same period last year. On the basis of maintaining China Mobile's market share, in August 2016, the company successively won major bids for China Telecom and Unicom diesel generator sets, with a total bid amount of about 237 million yuan, further enhancing the company's dominant position in the communications industry and data center computer room fields. At the same time, the company is actively enriching overseas sales channels and plans to establish a joint venture with Tide Machinery Co., Ltd. in Hong Kong to promote the development of overseas market business. The electric vehicle business is under pressure during the period of stranded policy windows: the recourse of fraud since the beginning of the year has caused the NEV industry to enter a long period of adjustment. Policy uncertainty has affected the production and sales volume of electric vehicles to a certain extent. Among them, electric distribution vehicles are the most obvious. From January to September 2016, according to data from the Ministry of Industry and Information Technology, the domestic pure electric special vehicle industry produced a total of 8,739 vehicles of various models, an increase of 10% over the same period last year of 7,902 vehicles. Affected by this, the company's new energy vehicle business failed to achieve the stage performance target, causing the company's net profit to decline year on year after returning to its mother. Up to now, no domestic electric distribution models have entered the NEV promotion catalogue. We expect that with the finalization of policy adjustments in the fourth quarter, the entry and release of electric distribution vehicles will be significantly accelerated. Profit forecast and rating: The company's EPS for 16-18 is expected to be 0.25, 0.38, and 0.54 yuan, and the PE corresponding to the closing price of October 28 is 85.1, 56.6, and 39.9 times, respectively. We are optimistic about the company's first-mover advantage in the field of electric logistics vehicles and maintain the “recommended” rating. Risk warning: 1) The risk that the policy falls short of expectations; 2) the risk that the sales of electronic logistics vehicles fall short of expectations.