Rizhao Port released its three-quarter report for '17. From January to September 2017, the company achieved operating income of 3,513 billion yuan, an increase of 9.65% over the previous year; incurred operating costs of 2,690 billion yuan, an increase of 5.31%; realized net profit attributable to owners of the parent company of 336 million yuan, an increase of 45.65% over the previous year; and achieved basic earnings per share of 0.11 yuan, an increase of 37.50% over the previous year. The bulk recovery led to a recovery in throughput. Beginning in the second half of 2016, along with the depreciation of the renminbi against the US dollar promoting the recovery of imports and the recovery of trade driven by rising commodity prices, the throughput of some types of goods recovered, and the decline slowed. From January to September 2017, the company completed cargo throughput of 170.41 million tons, an increase of 7.89% over the previous year. Foreign trade is growing steadily and domestic trade is growing strongly. In 2014-2016, the company's domestic trade cargo throughput declined year by year, and foreign trade cargo throughput fluctuated and declined. By type of goods, in 2014-2016, the transfer volume of the company's metal ore was mainly foreign trade. The foreign trade volume of metal ore was 128.56 million tons, 111.89 million tons, and 122.66 million tons, respectively. From January to June 2017, the company completed foreign trade cargo throughput of 139.19 million tons, an increase of 5.40% over the previous year; completed domestic trade cargo throughput of 31.22 million tons, an increase of 20.55% over the previous year. With the opening of the Wazi Railway, its strategic position has been enhanced. In September 2016, the Wari Railway, along with the existing “Xinhe-Yan-Ri” electrified railway, was directly connected to the port, making Rizhao Port the only coastal port in China with two direct railway lines of more than 1,000 km, improving its strategic position in the country's energy and raw material transportation pattern. The opening of the Wahri Line also contributed to the increase in the company's coal cargo throughput. From January to September 2017, the company completed the throughput of 26.66 million tons of coal and products, an increase of 23.69% over the previous year. Investment suggestions: Rizhao Port has good natural conditions and superior regional collection and evacuation conditions; the economic development of the hinterland where it is located is stable, and the overall development trend is good. It is estimated that the company's 2017-18 EPS will be 0.10 yuan and 0.11 yuan respectively, giving it an investment rating of “increased holdings - A”, with a target price of 4.80 yuan for 6 months. Risk warning: increased competition, demand falling short of expectations, etc.