Incident: On October 13, the company announced its performance forecast for the third quarter. According to the announcement, the company achieved net profit of 76 million yuan in the first three quarters, exceeding the level of 73.29 million yuan for the full year of last year, up about 82% from the level of 41.86 million yuan in the same period last year; and achieved net profit of 8.5 million yuan in the third quarter, a significant increase over the same period last year. Fluctuations in single-quarter results are in line with the company's current situation. Although, judging from a single quarter, Guoxing Real Estate's performance level has fluctuated greatly, this is because of Guoxing Real Estate's business model, and not because the company's operations are highly uncertain: 1. As a real estate company, the company's revenue recognition principle is that no housing is handed over, even if no sales amount is handed over, no amount of sales can be included in revenue; 2. The characteristics of this project determined that it is impossible for it to have continuous delivery behavior. The above two reasons together caused the high fluctuations in Guoxing Real Estate's performance.。 There is no doubt about high growth throughout the year. We believe that although the company did not deliver new homes on a large scale in the fourth quarter, there is a high probability that net profit for the whole year will increase by more than 30%, considering that the company still continues to sell some of its final homes and that other businesses may contribute potentially to performance. Guoxing Real Estate's focus is more on the operation of group companies. As the controlling shareholder of Guoxing Real Estate, Caixin Group has just completed the increase in its holdings in Guoxing Real Estate and has formed an absolute holding of the company. Later, as a group company involving real estate, finance, environmental protection, etc., how to position its sole listed company platform will determine the future prospects of Guoxing Real Estate. We believe that Caixin Group's position with respect to Guoxing Real Estate has the following aspects: 1. Continuing to maintain the real estate business. As additional capital is in place, the company will be more relaxed in advancing its business; 2. Or interact with the Group's environmental protection business, which is mainly achieved through the energy company newly established by Guoxing Real Estate; 3. In the future, Caixin Group has strong financial strength. In the future, it may use the advantages of Guoxing Real Estate's listed company platform to form interaction with the company in the financial sector. Profit forecast and rating: Considering that the company's business model is gradually becoming richer, we raised the company's profit forecast. We expect the company's EPS from 2015 to 2017 to be 0.33 yuan, 0.54 yuan, and 0.55 yuan, corresponding to PE, 58 times, 36 times, and 36 times, respectively. The valuation is higher than that of the industry, but Guoxing Real Estate's stock price logic is different from traditional real estate companies, and it is more about future mixed operations and asset injection, so we still maintain our investment rating for “buying” Guoxing Real Estate. Risk warning: There may be changes in national policies, or further adjustments in the real estate market.