According to the report, the company announced its 2017 three-quarter report. Operating revenue for the third quarter increased 96.55% year-on-year to 235 million yuan, achieving net profit of 12.13 million yuan. Revenue for the first three quarters increased by 72.97% year on year to 661 million yuan, achieving net profit of 22.54 million yuan. The main business continued to recover, in line with expectations. The main investment market and product structure have been continuously optimized, and the main business has continued to recover. Since this year, the company has actively integrated into the “Belt and Road” and continued to increase its efforts to develop new products such as photovoltaics and nuclear power. According to semi-annual report data, overseas revenue for the first half of the year was 97.2191 million yuan, up 25.7 times year on year, PV cable revenue increased 49.71% year on year, and nuclear power cable revenue increased 293.78% year on year. The company did not announce overseas expansion in the third quarter, but judging from a horizontal comparison, due to rising copper prices, the gross margin of many A-share cable companies declined in the third quarter compared to the second quarter, while the company's comprehensive gross margin for the third quarter was 16.50%, which continued to improve 0.03 percentage points from the second quarter. We believe that changes in gross margin reflect the continuous optimization of the company's product structure and market structure to a certain extent, and that the main business is in the process of continuous recovery. Strengthening the collection of long-term receivables, reducing costs and increasing efficiency has been very effective. Since this year, the company has continued to strengthen the collection of long-term receivables, with great results. The company's asset impairment losses in the third quarter were around -8.2 million yuan (5.43 million yuan in the same period last year), mainly due to the company's strengthened collection of accounts receivable, and the reduction in bad debt collection preparations compared to the same period. Furthermore, the company's management expenses for the first three quarters of this year were 39 million yuan. In the face of a sharp increase in sales, it decreased by 14 million yuan from 53 million yuan in the same period last year. The sales expenses ratio was 6.02%, down 1.76 percentage points from the same period last year. Cost reduction and efficiency were very effective. Investment recommendations Our neutral forecast for 2017-2019 is 2,701, 4720, and 85.36 million yuan, respectively. EPS corresponding to the current share capital is 0.05, 0.09, and 0.16 yuan/share, turning a loss into a profit, respectively, with a year-on-year increase of 74.73% and 80.86%. Currently, P/B is 2.5 times. Maintain the company's “increase in holdings” rating based on comprehensive considerations. Risk warning: new business expansion or unmet expectations, cable product profit margin may decline further