Event Overview: On October 27, the company released its performance report for the first three quarters of 2017. During the reporting period, operating income was 1,635 billion yuan, up 322.08% year on year; net profit was 191 million yuan, up 104% year on year. Core view: Focus on advantageous areas, and outstanding core competitiveness: the company's operating income and net profit for the first three quarters increased by 322.08% and 104% year-on-year respectively. The main profit contributed to the industry's cognitive solutions business, which achieved revenue of 104,005.63 million yuan; the tourism business achieved revenue of 59,46815 million yuan, an increase of 207.3798 million yuan over the same period last year. Xinzhi, a wholly-owned subsidiary of the company, has innovation and research technology with core technology, and has accumulated rich experience in intelligent construction within the industry, and its brand advantages are increasingly evident. Once again, the integrated project has been completed, and the company has reached a new level: a “strategic cooperation agreement” was recently signed with the police headquarters of the Wuhan Municipal Public Security Bureau, which will jointly build an “intelligent police command and dispatch system research and development center”, setting a new level in the field of traffic safety as an exclusive construction. Adhering to this advantage and leading technology in artificial intelligence and big data, the company's business is expected to grow rapidly in the future. Multi-level development of marine tourism, pioneer in smart tourism services: The company's tourism business is mainly the Beijing-Weizhou Island, Beihai-Haikou, and Penglai-Changdao route business. The in-depth development of land and island resources at both ends of the route forms a mature development model for land and sea islands. At the same time, it is actively expanding opportunities in surrounding markets, participating in the construction of tourism projects in various places such as Mount Longhu and Zushan in Qinhuangdao; and taking the lead in responding to the “tourism +” concept promoted by the state, introducing smart tourism, establishing a tourism big data platform and planning and design of four major application systems, and comprehensively promoting the construction of tourist attraction services. We believe that the company's new intellectual perception has strong R&D technology and brand advantages in the field of big data, and will fully collaborate with smart travel services in the future. Profit forecast and valuation: It is estimated that in 2017-2019, EPS will be 0.78 yuan, 0.95 yuan, and 1.20 yuan respectively, and corresponding PE will be 32X, 26X, and 21X respectively. Maintain a “Highly Recommended” rating. Risk warning: The expansion of asset-light projects falls short of expectations; the risk of a decline in company operations.