Event: The company announced the results for the first three quarters of 2017. The company's revenue was 3.150 billion yuan, up 109.18% year on year, net profit was 23.51 million yuan, up 46.57% year on year, gross profit margin 5.08% year on year, down 1.04pct year on year, net profit margin 1.57%, no change year on year. The company expects net profit of 133 million yuan to 148 million yuan for the full year of 2017, an increase of 350% to 400% over the previous year. Comment: The company's performance was in line with market expectations. The sharp increase in performance in the first three quarters was mainly due to the steady growth of the company's traditional main business, benefiting from economic recovery. In terms of inventory, the company reported a sharp increase of 1,064 billion yuan in inventory for the third quarter, an increase of 256% over the previous year, mainly due to the balance sheet merger of Runxing Technology. Currently, the entire CNC industry is still in a period of rapid growth, and the company's performance for the full year of 2017 can be expected to grow at a high rate. Acquiring Runxing Technology and entering the metal CNC field: The company acquired Runxing Technology through a cash+equity approach to further expand the company's industrial layout. Runxing Technology is a leading domestic CNC equipment company, benefiting from the design trend of next-generation mobile phone metal frames. The company is expected to benefit from the rapid growth of the CNC industry and the increased concentration of the industry. Runxing Technology's performance promises for 2017-2019 are 250, 300, and 360 million yuan. We believe Runxing Technology is expected to significantly exceed its performance promises. The main business is gradually picking up, and container handling equipment is growing steadily. The container handling equipment business is growing steadily under the guidance and impetus of the country's “Belt and Road” and “Yangtze River Economic Belt” related policies; the stainless steel industry benefits from the continuous deepening of supply-side reforms, the removal of production capacity in the steel industry, and its own perfect business layout, and the company's stainless steel business is expected to develop by leaps and bounds. Profit forecast and rating: The company's net profit for 2017-19 is estimated to be 1.40, 4.55 and 576 million yuan, corresponding to EPS of 0.20, 0.66, 0.84 yuan/share, and corresponding PE of 80, 25, and 19X. If you consider raising no more than 850 million yuan in supporting capital, the EPS exam is 0.14, 0.45, and 0.57 yuan/share, and the PE exam preparation is 86, 27, and 21X to maintain the company's “recommended” investment rating. Risk warning: The development of the CNC industry falls short of expectations, and there is a risk that traditional business will decline.