Event: The company released its three-quarter report on the evening of October 27. In the first three quarters, the company achieved operating income of 558 million yuan, a year-on-year increase of 5.13%; realized net profit for shareholders of the parent company of 953.71 million yuan, a year-on-year decrease of 23.36%; and net profit for shareholders of the parent company after deduction fell 31.35% year-on-year. Earnings per share were $0.4769. Comment: Profit margins declined due to increased competition in the industry, and there was an improvement in the third quarter. Due to increased competition in the industry, the company's gross profit margin was 25.74%, down 5.25 percentage points from last year. However, these signs have improved. In July-September, the company achieved a gross profit margin of 28.82%, which is a clear recovery from the gross margin of 23.96% in the first half of the year. We judge that the rise in demand for agricultural machinery during the fall harvest season has led to price recovery and increased profit margins. Sales pressure is obvious, accounts receivable have increased significantly, and repayment pressure requires continuous attention. In the first three quarters, the company's accounts receivable were 41,5996 million yuan, an increase of more than six times compared to the beginning of the year, mainly due to the fact that the company granted certain credit policies to some dealers. Furthermore, the increase in the cost rate shows the pressure on the company in terms of sales. The effective collection of accounts receivable by the company requires continuous tracking. The vertical extension of the product structure is the direction of development. The company is speeding up the construction of fund-raising projects, and the company will move its original production line to a new plant. At that time, the reliability of the company's products will be further improved. In the future, while continuously improving the quality of harvester products and enhancing the competitiveness of existing products, the company will develop machinery such as crawler self-propelled rotary cultivators, high-speed riding rice transplanters, and self-propelled straw briquers to form a product line with the company's existing rice and wheat combine harvesters for integrated operations such as cultivation, planting, harvesting, and straw recycling. Investment suggestions and ratings: There is still a long way to go in mechanizing agriculture in our country. We believe that the company will consolidate its market share of existing products. If it can enter certain underdeveloped segments through talent introduction, external mergers and acquisitions, etc., the future will be very broad. We expect the company's EPS for 2015-2017 to be 0.58 yuan, 0.64 yuan, and 0.77 yuan, maintaining the “recommended” rating. Risk warning: The macroeconomy continues to be sluggish; prices have fallen beyond expectations due to increased competition in the agricultural machinery industry; accounts receivable cannot be effectively recovered; and the expansion of the company's product categories has fallen short of expectations.