The net profit for the first three quarters of Accumulation Electronics increased 14.71% year on year: According to the third quarterly report of Accumulation Electronics, the company achieved operating income of 735 million yuan in the first three quarters, an increase of 23.08% year on year; net profit attributable to shareholders of listed companies was 72.28 million yuan, an increase of 14.71% year on year. Among them, the third quarter achieved operating income of 329 million yuan, an increase of 12.58% over the previous year; net profit attributable to shareholders of listed companies was 52.72 million yuan, an increase of 14.49% over the previous year. The company expects to achieve net profit of 142-168 million yuan in 2015, an increase of 10%-30% over the previous year. The acceleration of investment in agricultural distribution networks is expected to drive an increase in the company's performance: we expect the total planned investment in distribution networks to reach 2 trillion dollars in the next five years, of which the estimated investment in 2016 is 300 billion dollars (only 170 billion in 2014), an increase of nearly 80% over 2014, and a significant increase in the performance of high-quality equipment manufacturers in the industry is expected to be realized. Local power grid companies held a special conference to actively deploy agricultural grid investment and upgrade plans. The electricity reform document is about to be issued, and the energy internet is still a trend: the direction of the supporting documents for electricity reform mainly focuses on the reform and demonstration of transmission and distribution prices, the establishment of trading agencies, the liberalization of power generation plans, competitive electricity sales, and direct power supply to large users. We believe that power equipment companies can participate in electricity sales industry chain services through their own technology and customer advantages. This includes operation and maintenance, energy saving, and improving electricity efficiency, and can also carry out electricity sales business through smart microgrids. Jicheng Electronics already has energy consumption data for 16,000 energy-intensive enterprises and gas user data for 100,000 households across the country, and the potential for mining user sticky big data is obvious; at the same time, the company established Jicheng Energy Co., Ltd., which will invest in smart microgrids and new energy power plants. The company's layout in the energy Internet can reduce electricity costs, ensure electricity safety and improve electricity efficiency for users. Investment advice: We expect the company's net profit share EPS from 2015 to 2017 to be 0.45 yuan, 0.56 yuan, and 0.73 yuan, respectively. With the acceleration of agricultural distribution network investment and the advancement of the energy Internet, we expect the company's performance to continue to improve. Risk warning: The electricity reform did not meet expectations, and the progress of the energy internet project fell short of expectations.