Key investment events described Oriental Xinxing released the company's 2015 annual report. During the reporting period, it achieved operating income of 278 million yuan, a year-on-year decrease of 40.93%, a gross profit ratio of 32.98%, a year-on-year increase of 6.02%, and net profit attributable to the owners of the parent company of 0.1 billion yuan, a year-on-year decrease of 49.70%, and EPS of 0.19 yuan. Among them, the fourth quarter achieved operating income of 69 million yuan, a year-on-year decrease of 61.24%, a gross profit margin of 34.38%, a year-on-year increase of 1.28%, and imputed net profit of 426,200 yuan. Incident review: The industry is sluggish and profits are declining: Affected by adverse factors such as the slowdown in domestic economic growth and partial overcapacity, the overall efficiency of the petrochemical industry declined, company orders declined, and revenue fell 40.93% year on year. In terms of profit, the gross margin of the geotechnical engineering and survey business has increased due to the company's increased investment in research and development. Coupled with the increase in the share of survey business with high gross margin, the overall gross margin increased by 6.02%. In terms of expenses, management expenses increased 9.49% year on year due to the increase in R&D expenses, while financial expenses revenue increased 150.75% year on year due to interest income from raised capital. Asset impairment losses were reduced compared to last year, resulting in a final net profit of 18.86 million yuan. The company's main revenue for the fourth quarter was 69.33 million yuan, a year-on-year decrease of 61.24%. The gross profit margin for the fourth quarter was 34.38%, up 1.28 percentage points from the previous year. Net profit attributable to the fourth quarter - 426,200 yuan. The main business is sluggish and regaining momentum: Under the “new normal” of economic development, orders from surveying and geotechnical engineering enterprises have been reduced, and benefits have generally been drastically reduced. The company's predecessor, the Sinopec Group Survey and Design Institute, has continuously increased investment in scientific research and kept maximizing profits in engineering projects. The company's stock market is listed, and its capital strength has been significantly strengthened. Zhoushan and Chongqing branches have been set up to explore the national market and business, and market share is expected to increase. Looking overseas, full of ambition: The international infrastructure market has huge potential. With the formulation and advancement of the country's “Belt and Road” strategy, the company has stepped up efforts to develop overseas markets as one of the important growth points for future development. The company invested 4.58 million yuan to establish a wholly-owned subsidiary in Brunei to introduce advanced technology and equipment from abroad, enhance the company's overseas business capacity and efficiency, and actively explore the Southeast Asian market. The company's 2016 and 2017 EPS are expected to be 0.22 yuan and 0.25 yuan respectively, corresponding to PE156 and 139, giving it an “increase in holdings” rating.