Investment highlights: announcements/news. The company released its three-quarter report for 2017. The company achieved operating income of 3,513 billion yuan during the reporting period, an increase of 9.65% over the previous year; at the same time, the company strengthened cost control, and incurred operating costs of 2,690 billion yuan, an increase of only 5.31% year on year, resulting in gross margin increase of 3.16 percentage points to 23.43%, total profit of 522 million yuan, a year-on-year increase of 43.92%, and ultimately net profit of 336 million yuan, a year-on-year increase of 45.65% and 0.11 yuan per share. The weighted average ROE was 3.22%, up year on year At 0.96 percentage points, the performance exceeded previous expectations by about 10%. The company's business volume increased steadily, and cargo throughput increased 7.89% year over year. As international trade picks up and domestic bulk trade continues to boom, the company's business volume continues to grow at a relatively high rate. In the first three quarters, the company completed a total cargo throughput of 170 million tons, an increase of 7.89% over the previous year. Among them, the main types of metal ore throughput were 104 million tons, up 3.48% year on year, coal and products throughput was 26.66 million tons, up 23.69% year on year; timber, food, steel and non-metallic ore throughput reached 14.88 million tons, 10.34 million tons, 4.96 million tons and 1.94 million tons, respectively, up 11.82%, 12.08%, 12.84%, and 8.84% year on year, respectively. In addition, the company's goods are still mainly foreign trade goods. Among them, the throughput of foreign trade goods reached 139 million tons, an increase of 5.40% over the previous year, while the throughput of domestic trade goods increased sharply to 31.22 million tons, an increase of 20.55% over the previous year. The opening of a container foreign trade route in Southeast Asia is expected to further enhance the company's transit function. On October 17, the “Rizhao-Southeast Asia” container foreign trade route linked to many countries was officially launched. After the opening of the route, on the one hand, the layout of the foreign trade container route at Rizhao Port will be optimized to facilitate logistics from the Lunan region to Southeast Asia; on the other hand, the company will make full use of the advantages of the two 1,000-kilometer railways of the new Heyanri and Wari to vigorously develop sea-rail intermodal transport, continue to strengthen and enhance the company's railway and sea transit functions, and further increase the company's business volume. The relocation of Dongmei in the Ishiusu port area to the south will begin construction to build a comprehensive “Belt and Road” port. Construction of the east coal southward transfer project in the Ishiusu port area officially began in mid-October. All of the eastern coal terminals will be moved southward, and railway trains entering and leaving the port will be adjusted from north to north to south, further optimizing the port production organization. The project is expected to be completed in June 2019. At the same time, the company's containerization project for the western terminal in the Ishiusu port area and the construction project for the crude oil terminal are progressing steadily. The company will build a “Belt and Road” integrated terminal in 2021, which will become an important global transit base for energy, raw materials and containers. Maintain profit forecasts and maintain an “increase in holdings” rating. As a precautionary measure, we maintain our profit forecast. We expect EPS from 2017 to 2019 to be 0.11 yuan, 0.12 yuan, and 0.13 yuan respectively, and the corresponding current stock price PE is 39 times, 36 times, and 33 times, respectively. However, considering that the valuation is still relatively high, we maintain the “Overweight” rating. Risk warning: The country's import and export trade continues to decline.