The company's performance in the first three quarters of 2017 increased 16.17% year on year, corresponding to EPS 0.17 yuan. The company achieved operating income of 5.710 billion yuan from January to September 2017, up 2.04% year on year; realized net profit attributable to shareholders of listed companies was 185 million yuan, up 16.17% year on year, corresponding to EPS of 0.17 yuan; net profit attributable to shareholders of listed companies after deductions was 184 million yuan, up 26.23% year on year. Among them, the company achieved operating income of 1,970 billion yuan in the third quarter, a year-on-year decrease of 2.43%; realized net profit attributable to shareholders of listed companies of 64 million yuan, an increase of 9.45% over the previous year, and contributed 0.06 yuan in EPS in a single quarter. By business, during the reporting period, the company's construction business revenue was 4,577 billion yuan, accounting for 80.16% of operating income; real estate business revenue was 1,031 billion yuan, accounting for 18.05%. The number of new contracts signed increased sharply by 74.3%, and the number of new contracts awarded by the company from January to September 2017 was 10.099 billion yuan, a sharp increase of 74.3% over the previous year. As of the end of the reporting period, the total amount of unfinished contracts signed by the company reached 20.729 billion yuan (construction projects of 16.198 billion yuan+PPP projects of 4,531 billion yuan), 2.4 times the total revenue of last year and 3.7 times the revenue of the construction business, forming a strong guarantee for future performance growth. The company used the PPP model as a channel to actively transform new fields such as design and construction integration and large shields. During the reporting period, the company focused on expanding and upgrading emerging businesses and strengthening traditional advantageous businesses: on the one hand, using PPP development opportunities to enter the integrated field of design and construction, open up the upstream and downstream construction industry chains, and enhance comprehensive profitability and ability to obtain large orders; on the other hand, the company continued to strengthen its traditional advantages in underground construction business, actively expanding new markets and business fields such as rail transit, railways, municipal administration, large shields, water, environment, etc., won the bid A number of key projects have further accumulated experience and enhanced market competitiveness. There are plenty of orders in hand, PPP projects are progressing smoothly, and the growth rate of new contracts signed by companies that maintain “increased holdings” in 2017 is accelerating. PPP projects are progressing smoothly, and the increase in profitability is obvious. Therefore, we slightly raised the company's profit forecast for 2017-2019. It is estimated that the company's net profit for the next three years will be 285, 3.36, and 377 million yuan, respectively. The corresponding EPS will be 0.26, 0.30, and 0.34 yuan, respectively, and the target price is 6.50 yuan, maintaining the “increase in holdings” rating. Risk warning: PPP projects have not progressed as expected; related policies and new business development have fallen short of expectations.