1-3Q2017 revenue increased 34.50% year on year, net profit increased by 21.53% year on year on the evening of October 27. The company announced the 2017 three-quarter report. 1-3Q2017 achieved operating income of 8.197 billion yuan, an increase of 34.50% year on year. Excluding the impact of the acquisition of stores, revenue increased 1.74% year over year; realized net profit of 557 million yuan, up 21.53% year on year, equivalent to EPS of 0.32 yuan; achieved net profit of 551 million yuan, up 63.65% year on year, deduction of non-net income The large increase in profit is mainly due to the fact that the net profit of the five companies in South China from January to January last year was non-recurring profit and loss. This year, the performance of these companies was classified as recurring profit and loss, and the company's performance slightly exceeded expectations. Looking at the company's revenue by business format, department stores, supermarkets, olai/shopping centers achieved 62.28/ 6.39/2.31/ 317 million yuan respectively, up 27.92%/70.77%/7.79%/202.18% from the previous year. Looking at the quarterly split, the company achieved revenue of 2,452 billion yuan in 3Q2017, a year-on-year increase of 3.84%, an increase of less than 34.07% in 2Q2017. Net profit was realized at 176 million yuan, an increase of 45.36% over the previous year, an increase greater than the 12.93% increase in 2Q2017. The consolidated gross margin increased by 0.3 percentage points, and the period expense ratio increased by 0.17 percentage points. The company's consolidated gross margin in 1-3Q2017 was 28.10%, up 0.30 percentage points from the same period last year. The company's expense ratio for the period 1-3Q2017 was 16.56%, up 0.17 percentage points from the same period last year. Among them, the sales/management/finance expense ratio was 11.22%/2.16%/3.18%, respectively, which changed -1.55/ 1.16/ 0.56 percentage points from the same period last year. Integration continues to advance. The number of the company's stores did not change during the reporting period until regional synergies take effect. The main focus is on the transformation and integration of stores acquired last year. The integration of Renhe and Victoria into the company's management system enabled the company to basically complete a multi-regional and multi-business layout. As the transformation and upgrading of existing stores continues to advance, the company's profitability may be further improved. Raise the profit forecast and maintain the “increase in holdings” rating. Considering that the company's absorption and integration of new stores was faster than expected, we raised our forecast for the company's fully diluted EPS in 17-19 to 0.39/ 0.43/ 0.46 yuan (previously 0.37/ 0.41/ 0.44 yuan), respectively, to maintain the increase in holdings rating. Risk warning: The growth rate of the regional economy falls short of expectations, and the integration of newly acquired stores falls short of expectations.