Performance fell short of expectations (1). 1-3Q companies achieved operating income of 509 million yuan, a year-on-year increase of 28.31%; imputed net profit of 29.83 million yuan, a year-on-year decrease of 57.59%; of these, Q3 achieved revenue of 185 million yuan, an increase of 5.80% year-on-year; and imputed net profit of 14.38 million yuan, a year-on-year decrease of 62.1%. The year-on-year decrease in the company's net profit was mainly due to increased investment in mobile Internet projects; (2) the company's gross margin in the first three quarters was 39.18%, down 5.90 percentage points from the previous year; (3) due to the company's increased investment in mobile Internet projects, the company's expenses for the first three quarters reached 36.01%, an increase of 7.71 percentage points over the same period last year; of these, sales expenses were 79.43 million yuan, up 51.8% year on year, and the cost rate was 2.42 percentage points higher than the same period last year; management expenses were 117 million yuan, same as last year The year-on-year increase was 50.9%, and the fee rate was 3.43 percentage points higher than the same period last year; (4) the company signed 6,738 contracts during the reporting period, slightly higher than 6,051 points in the same period last year; the total contract amount was 662.6725 million yuan, down 7.4% from the previous year. Development trends The company is strengthening technology research and development and market development to lay the foundation for the transformation to the mobile Internet. (1) In terms of technology research and development, the company has upgraded the technology of cloud parking products while launching a handheld parking app supporting the cloud parking system and upgrading peripheral discount apps, to truly achieve unattended, quick access without a card, and greatly reduce hardware costs and enhance competitiveness; (2) in terms of market development, the company continues to increase the depth and optimized layout of marketing service outlets, with a total of 121 marketing service outlets across the country. The profit forecast maintained the company's revenue forecast for 2015 to 2016 at 763/913 million yuan. Due to increased investment in the company's transformation to mobile Internet, the net profit forecast attributable to the company was lowered to 4736/65.28 million yuan, a year-on-year change of -49.3%/39.0%, respectively; a decrease of 57.5%/52.9% from the original forecast; and EPS of 0.08/0.11 yuan, respectively. Valuation and recommendations Maintain recommendations. The company has stepped up its efforts to transform to mobile Internet, and the implementation of transformation has replaced performance as a core indicator for observing the company. Considering that the company continues to strengthen technology research and development and market development to lay the foundation for the transformation to mobile Internet, the target price was raised 25% to 20 yuan, and the corresponding market value was 11 billion yuan, maintaining the recommendation. Risks (1) a sharp reduction in housing completion or new construction; (2) corporate transformation and community O2O market expansion fall short of expectations; (3) systematic sector valuation correction.