Report highlights incident description Tibet Tianlu released its 2015 three-quarter report. The first three quarters achieved operating income of 1,629 billion yuan, a year-on-year increase of 60.74%, a gross profit ratio of 24.44%, a year-on-year increase of 0.68%, and a net profit attributable to owners of the parent company of 148 million yuan, a year-on-year increase of 189.91%, and an EPS of 0.27 yuan; of these, achieved operating income of 731 million yuan in the third quarter, a year-on-year increase of 37.31%, and gross profit margin of 27.27%, up 1.46% year on year, achieved net profit attributable to owners of the parent company of 901 million yuan, year-on-year It rose 73.81%, and the EPS for the third quarter was 0.17 yuan. Incident review: Strong performance led to a rise in profit: The company's revenue showed explosive growth due to its contribution to the building materials and cement business. Revenue in the first three quarters increased 60.74% year on year. The cement business, which has a high gross profit, led to an overall gross margin increase of 0.68% year on year, and the gross margin for the first three quarters was 24.44%. In terms of expenses, management expenses increased drastically due to increased personnel expenses, which increased by 41 million yuan over the same period last year. At the same time, financial expenses increased by 93.48% year-on-year due to an increase in bank loans and an increase in sales expenses due to the development of cement business, which ultimately led to period expenses of 146 million yuan, a sharp increase of 62 million yuan over the same period last year. In addition, the sale of real estate, disposal of some fixed assets, and the reduction of the corporate income tax rate from 15% to 9% led to an increase in non-operating income and a reduction in taxes and fees. The company's revenue in the third quarter increased by 37.31%, and gross margin increased 1.46% year on year to 27.27%. The sharp increase in management expenses led to an increase of 200 million yuan in three fees, and a final Q3 net profit of 91 million yuan. The company's cash flow for the first three quarters was good, at 64 million yuan, a sharp increase from 31 million yuan in the same period last year, mainly due to an increase in operating activity. At the same time, accounts receivable increased slightly from the same period last year, with a slight increase in accounts receivable over the same period, with a revenue ratio of 89.93%, a decrease. The company added additional construction materials and pre-payment for commencement of construction increased, and advance accounts received increased 35.77% compared to the beginning of the period, indicating that later orders were good. Collaborative development of construction and building materials: The company's construction side implemented a new management model for the construction process and strengthened management efforts by using China Power Construction's Tibetan aid platform, so revenue increased compared to the same period last year. Furthermore, the company is actively strengthening the building materials business and carrying out technological transformation and upgrading of high-competition building materials. Furthermore, the relatively good cement market demand in the Qamdo region has made a new breakthrough in cement sales. In the future, the company will benefit from the “Belt and Road” development, and road construction in the Xinjiang region and infrastructure construction in the Eastern Xinjiang region will bring reliable orders to the company. The company's 2015 and 2016 EPS are expected to be 0.30 yuan and 0.33 yuan respectively, and PE37 and 33 will be given a “buy” rating.