Investment Highlights The company released its 2017 three-quarter report: In January-September, the company achieved operating income of 693 million yuan, a year-on-year increase of 47.23%, and achieved net profit attributable to shareholders of listed companies of 116 million yuan, an increase of 41.51% over the previous year. The year-on-year growth rate was nearly 50%, and the gross margin reached 33.06%. The company's revenue for the first three quarters reached 693 million yuan, up 47.23% year on year, and revenue for the third quarter reached 253 million yuan, up 49.70% year on year, up 8.12% month on month. Revenue continued to grow in a single quarter during the year. The consolidated gross profit margin for the first three quarters was 33.06%, up 1.80 percentage points from the same period last year. The gross profit for the single quarter reached 34.57%, up 3.73 percentage points year on year and 2.53 percentage points month on month. Although the price of raw materials increased sharply in 2017, downstream demand for the company's products is strong and has the ability to transfer prices; in addition, expanding the company's production and increasing scale effects will also help increase gross margin. The downstream shipping market is gradually picking up, and policies promote the development of multimodal transport. The CCFI Composite Index has gradually risen since July of last year and remained around 860 points. According to Clarkson's estimates, the growth rate of global container trade is expected to reach 5.13% in 2017. The recovery in the performance of transportation companies is expected to lead to the release of “stock+incremental” demand. In April 2017, the Development and Reform Commission, the Ministry of Transport, and the Railway General Administration issued the “13th Five-Year Plan” for railway container intermodal transport development, which proposes that by 2020, container traffic will reach about 20% of railway freight volume, and that container rail and water intermodal traffic will increase by more than 10% per year, promoting the rapid development of railway container transport. The development of the cold chain will enter a boom cycle, which will benefit the company's refrigeration equipment sales. In 2015, the cold chain circulation rate of fruits, vegetables, meat and aquatic products in China was less than half that of developed countries, and the per capita cold storage area was only 1/6 of the US. China's cold chain industry has a lot of room for development. The State Council issued “Opinions on Accelerating the Development of Cold Chain Logistics to Ensure Food Safety and Promote Consumption Upgrading”, which will significantly catalyze the development of China's cold chain industry. The company has advanced quick-freezing technology, continues to develop new technologies, and is expected to enter a rapid upward channel. Profit forecast and rating: Optimistic about the company's strong downstream demand for tank containers and quick-freezing equipment, the company expects the company's EPS to be 0.85/1.05/1.22 yuan in 17-19, respectively, giving it an “increase in wealth” rating. Risk warning: Cold chain development falls short of expectations, tank container demand falls short of expectations