The company issued a performance forecast. Net profit for 2017 increased by 92%-112%. On the evening of January 30, the company announced the “2017 Annual Performance Forecast Announcement”: The company is expected to achieve net profit of 1,093-1,203 billion yuan in 2017, an increase of 92%-112% over the previous year, converted into fully diluted EPS of 0.63-0.69 yuan, and net profit after deducting non-recurring profit and loss was 8.47-878 billion yuan, up 88%-95% year on year. The performance exceeded expectations. The integration of new M&A stores is beginning to bear fruit. The reasons for the sharp increase in performance due to multiple factors include: 1) In terms of main business, the company actively promoted the integration of new M&A stores in 2017, and the revenue and profitability of South China and Victoria in Inner Mongolia increased significantly year-on-year. 2) The impact of accounting treatment is due to the fact that Chengdu Renhe was in March 2016, and Inner Mongolia Victory Group only began to be included in the scope of the company's consolidated statements in June 2016. The 2016 consolidated statement did not cover the net profit of Chengdu Renhe for 1-2 months and Inner Mongolia Victoria for January-May, and the 2017 consolidated statement covered a longer period. 3) In terms of non-operating profit and loss, in 2017, Chongqing Jianfeng Chemical purchased 28.21 million shares of Chongqing Pharmaceutical held by the Company through a non-public offering of shares. After the transaction was completed, the company held 73.33 million shares of Jianfeng Chemical, accounting for about 4.24% of Jianfeng Chemical's total share capital after issuance. The return on the company's investment in this asset restructuring has been confirmed. The business area continues to expand. Short-term digestion and integration is the direction for the company to complete the acquisition of Chengdu Renhe and Inner Mongolia Victoria in 2017, basically completing a multi-regional and multi-format layout. In early 2018, the company's acquisition of Chongqing Maoye further expanded the company's business area, increasing revenue and profitability. We believe that the future development direction of the company will be mainly internal digestion and integration. As existing stores are upgraded, the company's profitability may be further improved. Raise the profit forecast, maintain the “increase in holdings” rating for the time being, and the company's business area continues to expand, and the acquisition of stores is progressing in an orderly manner. We raised our forecast for the company's full dilution of EPS in 2017-2019 to 0.66/ 0.71/0.73 yuan (previously 0.39/ 0.44/ 0.48 yuan), respectively, while maintaining the “increase in holdings” rating for the time being. Risks suggest that the growth rate of the regional economy falls short of expectations, and that the integration of acquired stores falls short of expectations.