Announcement summary The company predicts a profit of 244-300 million yuan for the first three quarters of 2016, an increase of 30% to 60% over the previous year. In addition, the company and Guangdong Shengxiang jointly invested in the establishment of a new company to expand the fields of railway, rail transit and highway business. Investment highlights Net profit for the first three quarters increased by 3-60%. Continuing, high-growth companies forecast profit of 244-300 million yuan for the first three quarters of 2016, a year-on-year increase of 30% to 60%, and a single-quarter profit of 1.07 to 131 million yuan for the third quarter, an increase of 30% to 60% over the previous year. The main reasons for the company's rapid growth include: 1) the high-end power equipment and data center business has maintained steady growth; 2) Along with the rapid growth of the photovoltaic industry, the company's photovoltaic system integration business has achieved relatively rapid growth. At the same time, the grid-connected power generation revenue of self-owned photovoltaic power plants has increased significantly. The company invests in the rail transit sector to seize a wider market. The company plans to jointly invest with Guangdong Shengxiang Electric Technology Development Co., Ltd. to establish Guangdong Yisheng New Energy Investment Co., Ltd. The company invested 15.3 million yuan, accounting for 51% of the shares, making full use of the resource advantages of both parties to further expand the company's coverage in the fields of railways, rail transit and highway business, promote the smooth implementation of the company's industrial layout and strategic plans, and achieve the goal of win-win cooperation. Earlier, the state released a three-year action plan for major transportation infrastructure projects from 2016 to 2018. According to our statistics, the three-year investment amount for new railways was divided into 7804 billion yuan, 494.7 billion yuan, and 673.4 billion yuan. The investment in urban rail transit in the three years was 909.8 billion yuan, 484 billion yuan, and 257.6 billion yuan respectively. The investment in all transportation infrastructure is about 3.6 trillion yuan, and the corresponding power equipment investment is generally about 30 billion yuan. There is a lot of room for additional growth for the UPS and backup power industry. We believe that the company's current investment layout in rail traffic and other fields is precisely to enter the market and seize the market, and will become a new growth point for the company in the future. Profit forecast and valuation. Under current share capital, we expect the company's net profit from 2016 to 2018 to be 4.0 million, 5.66, and 723 million yuan, respectively, with year-on-year growth rates of 43%, 42%, and 28% respectively, and EPS of 0.69, 0.98, and 1.26 yuan respectively, corresponding to 39, 27, and 21 times P/E. Maintain the “Overweight” rating. Risk warning: IDC market demand is declining, system integration business falls short of expectations, and charging pile production capacity is insufficient.