Core ideas:

Income has increased, excluding the impact of "business change" after the gross profit margin rose, the company's operating income in the first three quarters showed a steady upward trend. Excluding the impact of "revenue change", gross profit margin increased by 1.39 percentage points compared with the same period last year, which may be related to the increase in photovoltaic business.

The expense rate decreased, the investment income increased significantly, and the net interest rate increased by 18.8115 million yuan, or 891.15%, compared with the previous period, mainly due to the confirmation of the increase in investment income of Xinyi Solar (Liu'an) Co., Ltd. The company expects the growth rate of net profit for 2016 to be between 30% and 60%, mainly due to the development of photovoltaic business.

The photovoltaic business is advancing steadily and the transformation path is clear.

The photovoltaic business may contribute 18.8115 million yuan to the company's investment income, accounting for 24.9% of the company's net profit, which is expected to continue to accelerate in the future.

Liu Pingchun and Zhuang Zhiwei made great efforts to join, and a new class of leaders injected new vitality into investment suggestions.

The company is smaller and less affected by the economic cycle. Under the pressure of the economic downturn, it is not easy for the company to maintain rapid growth. And the company's transformation of photovoltaic has begun to bear fruit, and the investment income brought by the photovoltaic business in the first three quarters may exceed 20% of the net profit. As the transformation of the company advances, it is expected to bring more performance increments in the future. In addition, the new leader of the company may have new ideas after taking office, which is expected to lead the company to make a greater breakthrough, which is worth looking forward to. We are optimistic about the future development of the company. It is estimated that the EPS of the company from 2016 to 2018 will be 0.81,1.07,1.28 yuan, maintaining the "buy" rating.

Risk hint

The development of photovoltaic power station is lower than expected; the investment is accelerated downwards and so on.