Incident: On the evening of October 24, the company disclosed its 2017 three-quarter report. During the reporting period, the company achieved operating income of 2,580 billion yuan, a year-on-year increase of 38.07%, net profit attributable to shareholders of listed companies of 160 million yuan, an increase of 0.83% over the previous year, and a performance increase of 10% lower than Shenwan Hongyuan's expectations. The main reason was the increase in investment in elevator control products in marketing and the significant increase in financial expenses due to delayed financing. Key investment points: The elevator business has increased investment in promotion, and the delay in financing has led to an increase in financial expenses. During the reporting period, the company increased market investment in elevator control products and achieved a slight increase in revenue, but sales expenses increased to a certain extent. We believe that the elevator business will not improve much in the short to medium term depending on the industry pattern. In the future, the company is expected to gradually increase its profitability through integrated solutions and operation and maintenance markets. In March 2017, the company's approval to raise capital for fixed increases failed, financing progress was delayed, and financial expenses for the first three quarters increased by 18.11 million yuan. The issuance of convertible bonds by the company in the third quarter was approved by the Securities Regulatory Commission, and the burden of financial expenses will be significantly reduced in the future. Robotics and motion control have continued to grow at a high rate, and convertible bonds have been issued to expand production capacity. During the reporting period, robotics and motion control products maintained high growth and became the company's main profit contribution point. Up to now, the number of self-produced robot bodies sold by the company has exceeded 1,000 units, and is expected to achieve the target of a year-on-year increase throughout the year. Currently, the company's robot production capacity is limited. With the completion of convertible bonds and the implementation of intelligent robot manufacturing projects for fund-raising projects, production capacity will continue to expand, and the company's robot business is expected to maintain high growth. Zhishan Intelligent Control is doing well, contributing new performance growth points. In June 2017, the company acquired 100% of the shares of Hangzhou Zhishan Intelligent Control Technology Co., Ltd. Zhishan Intelligent Control uses motion control units such as integrated servo all-in-one machines, full digital intelligent servos, and steppers as its core products. Currently, it mainly focuses on textile machinery and CNC machine tools, and has a high market share and popularity in the segment. The textile industry picked up in 2017, and Zhishan Intelligent Control is doing well, and it is expected that it will successfully complete its performance promises. Lower the profit forecast and maintain the increase in holdings rating: We lowered our profit forecast. We expect the company to achieve net profit of 191 million, 269 million, and 316 million yuan in 17-19 (234 million and 295 million yuan respectively in the 17-18 years before adjustment), and corresponding earnings per share of 0.31 yuan, 0.43 yuan, and 0.51 yuan/share (0.38 yuan and 0.48 yuan/share in 17-18, respectively, before the adjustment). The current stock price corresponding to the 17-19 PE assessment is 36 times, 26 times, and 22 times, maintaining an “increase in holdings” Level.