Investment matters: The company released a performance forecast for the first three quarters of 2017: the company's net profit was 57 million yuan to 59 million yuan, an increase of 248.01% to 260.22% over the previous year. The company's net profit for the third quarter was 204.4985 million yuan to 22.4985 million yuan, up 1835.83% to 2024.70% year on year. Report summary: The rapid growth of security in Xinjiang has led to high performance growth by winning a number of major orders. The security industry in Xinjiang has achieved rapid growth. As a high-quality local enterprise, based on its strong delivery ability and ability to receive orders, the company signed orders of 80 million yuan and 321.79 million yuan with Shule County and Kashi City this year. Jointly with Dahua Co., Ltd., it won the pre-bid for the Qing'an City PPP project in Qimei County. The total construction and operation amount exceeded 500 million yuan. Both the volume of orders and the overall order amount were higher than the level of previous years, providing strong support for the rapid growth of the company's performance. At the same time, the company participated in PPP projects through cooperation. On the one hand, it showed that the company's strong project experience and related technical advantages were recognized by domestic giants; on the other hand, it reflected the company's active layout and exploration of subsequent security operations. It is planned to purchase Heung Kong Technology to lay out data center solutions. With the gradual establishment of regional security video surveillance systems, a large amount of audio and video data will be generated, and data center construction is or will soon become an important regional construction project. As a high-quality communication system integrator in Xinjiang and the northwest region, the company now targets high-quality data centers, lays out regional data center construction ahead of schedule, and seizes opportunities based on its own advantages. In the future, based on the company's experience in security, communications and data center construction, combined with the unique geographical and cultural characteristics of Xinjiang, it is expected to expand related business to Central and West Asia and other regions. Investment advice: The company expects EPS of 0.81/1.38/2.30 yuan in 2017/2018/2019, corresponding to PE40.22/23.74/14.25 times, to maintain the “buy” rating. Risk warning: Risk of policy changes, quarterly fluctuations in orders.