Key investment events: Sifang Cold Chain released its 2017 three-quarter report. During the reporting period, the company achieved operating income of 693 million yuan, an increase of 47.23% over the previous year; net profit of 116 million yuan, an increase of 41.51% over the previous year; and earnings per share of 0.56 yuan. The third quarter achieved revenue of 253 million yuan, a year-on-year increase of 47.23%, and achieved net profit of 47.22 million in a single quarter, an increase of 46.23% over the previous year. Net profit for the third quarter increased by 41.51%, slightly exceeding market expectations in the 2017 mid-year report. The company achieved operating income of 440 million yuan, an increase of 46.21% year on year; net profit was 69.1706 million yuan, up 38.79% year on year. In the 2017 three-quarter report, the company achieved operating income of 693 million yuan, an increase of 47.23%; net profit was 116 million yuan, an increase of 41.51% year on year; the single-quarter results for the third quarter were still slightly accelerated. 2017Q3 gross margin was 33.06%, a slight increase from the interim report (31.19%). Tank containers have benefited from the warming of global trade and improved demand. Company orders are full, production schedules are tight, and demand for containers has picked up significantly. The BDI Baltic Sea Freight Index has nearly doubled from the beginning of the year to now, and the CCFI index has also increased significantly from 2016 to now. Upstream and downstream container companies see a significant improvement in the market this year. There are three main companies competing in the tank business. Sifang's cold chain market share is 12%, second only to CIMC Group and Shengshi. Sifang Cold Chain's 2017 semi-annual report shows that the company's tanks increased by 50% in the first half of the year, gross profit remained stable, and the company's orders were full. Production in the second half of the year is scheduled until next spring, and production capacity has reached its maximum. The company's advance payments reached 224 million, an increase of 46.4% over the previous year, indicating that the company is in good hands on orders. Benefiting from the recovery of the cold chain industry and compounding new consumer demand, cold chain equipment grew beyond expectations. The main downstream of the company's traditional main business, quick-freezing equipment, is the food processing industry. Demand is relatively stable, there will be no major cyclical fluctuations, and the performance is relatively steady. In recent years, benefiting from the upgrading of downstream consumption, in addition to traditional quick-frozen food, new demand has been added, such as snack food (such as delicious flavors, etc.) and the bakery industry, adding new products (such as wake-up equipment, etc.) and the continuous development of new customers. The revenue of quick-frozen equipment increased by 29.4% in the first half of the year, and the third quarter report continued to exceed expectations. We believe that the company has obvious advantages in quick-freezing equipment for food processing. It is guided by sales and customer needs, continuously explores market demand and develops new products. It is an excellent market-pioneering company, and is expected to expand on a large scale in the field of cold chain equipment. Fund-raising production capacity is about to be released, and production capacity bottlenecks have been resolved, helping companies actively advance their IPO fundraising projects. The tank container expansion project and the cold chain equipment expansion project are expected to be completed next year, further expanding production capacity. After delivery, it is expected to achieve production capacity of 220 quick-freezing equipment, 2,200 refrigerated containers, and 7,300 tank containers. After the fund-raising and production capacity is released, the company's tank production capacity will nearly double, and it will also enter the cold storage field to open up the main business market. Fund-raising will release production capacity to help increase performance in the next few years. Profit forecasts and investment recommendations estimate that the company's net profit from 2017 to 2019 will be 177 million yuan, 229 million yuan and 283 million yuan, respectively, and EPS of 0.84 yuan, 1.09 yuan, and 1.35 yuan respectively. The corresponding P/E is 34.31 X, 24.96X, and 20.17X, respectively. First coverage, with an increase in holdings rating. The target price is 33 yuan, which is about 30 times PE in 2018. Risks indicate that the production capacity release of fund-raising projects is not as good as expected; the risk of increased competition in the industry; and the risk of declining gross margin.