Key investment events: The company issued a series of announcements such as the three-quarter report. The company's revenue for the third quarter was 379 million yuan, an increase of about 30%; realized net profit of 45.93 million, an increase of 136%; revenue for the first three quarters was 881 million, an increase of 25.84%; and profit for the first three quarters was 23.15 million, an increase of 561%, reversing the loss situation in the first half of the year. In addition, the company achieved its target profit growth target in 2015, so 13.875 million restricted shares granted for the first time to 100 incentive recipients in the third restricted stock incentive plan met the requirements for the first unlocking. The unlockable ratio this time is 40%. The total number of unlockable shares is 5.55 million shares, and the unlocking date is November 7, 2016. The company's performance reversed losses, and subsidiaries performed brilliantly: the first half of the year was usually a period of sluggish company performance. The company's net loss in the first half of this year was 22.68 million yuan, increasing losses over the previous year. Sales were strong in the third quarter, revenue continued to grow rapidly, and a net profit of 45.93 million was achieved, reversing the company's loss situation in one fell swoop. Among them, Beijing Disaiqizheng Technology Co., Ltd., a wholly-owned subsidiary of the company, performed well. This high-tech enterprise specializing in R&D, production and sales of modular high-frequency switching power supplies has maintained rapid growth since 2014. In 2016/01-09, it achieved operating income of 153,93449 million yuan, total profit of 18.5488 million yuan, and net profit of 18.442,500 yuan, contributing a lot to the company's profit. The energy-saving business has entered a harvest period, increasing the company's continuous cash flow: in the first half of this year, the company invested in the construction of the southwest stainless steel converter waste heat cascade utilization and dust removal project, and the WISCO sintering plant 3 #烧结环冷机余热回收利用改造项目、武钢炼铁厂五 #高炉鼓风脱湿改造项目、子公司青海民和动力源和石嘴山动力源的余热发电项目陆续完工并投入使用。 The company's energy saving business is in the harvest period. Various projects continue to reap steady cash flow, and the revenue growth rate has reached 118%. The allotment plan was approved to further expand production capacity and increase R&D investment: The company's allotment plan was approved, and it plans to raise 800 million yuan in capital. After receiving capital, on the one hand, the company continued to expand the production capacity and technical process level of the Anhui factory, and on the other hand, invested close to 300 million dollars to build a R&D center to maintain the company's technological advantages. Furthermore, the company's repayment of part of the bank loan will also strongly reduce financial expenses and enhance the company's profitability. Profit forecast and investment rating: The company's 2016-2018 EPS is expected to be 0.17 yuan, 0.21 yuan, and 0.26 yuan, corresponding to PE66/56/44X. We are optimistic about the company's layout in the HVDC industry and expect 2017 to enter a period of rapid development, giving it a “buy” rating. Risk warning: There is a risk that the communication power industry will not develop as expected, there is a risk that gross margin will decline due to increased competition, and there is a risk that stock prices will be pressured due to the recent unlocking of restricted stocks.