Investment highlights: Events/news: The company announced the 2017 annual report, with annual operating income of 4.804 billion yuan, up 12.33% year on year; net profit of 369 million yuan, up 109.30% year on year; net profit after deducting non-return net profit of 366 million yuan, up 113.97% year on year; finally achieving basic earnings per share of 0.12 yuan, up 100% year on year; weighted average ROE was 3.51%, up 1.78 percentage points year on year, and performance slightly exceeded previous expectations by about 5%. Benefiting from the recovery in imports and exports and commodity prices, cargo throughput stopped falling and rebounded by 8.59%. During the reporting period, the company benefited from a recovery in exports, rising commodity prices and increased domestic demand. It completed cargo throughput of 226 million tons throughout the year, an increase of 8.59% over the previous year, reversing the downward trend of the past three years. The throughput of the main types of goods has increased significantly. Among them, the throughput of metal ores and coal and products accounted for a relatively large share of 13.953 million tons and 36.43 million tons, with increases of 7.33% and 20.74%; timber, grain and cement throughput was 19.13 million tons, 12.49 million tons and 3.6 million tons, respectively, up 8.41%, 7.27% and 15.27% year on year; annual steel and non-metallic ore throughput declined 18.18% and 3.69% year on year, but accounted for a small share of the overall share. Strengthen the linkage of resources throughout Hong Kong to release production capacity, and streamline institutional personnel to reduce costs. During the reporting period, the company coordinated the connection between vehicles and cargo and the mutual use of berths, depots, warehouses, and loading lines between companies, making every effort to unleash production capacity. Throughout the year, a new record of 136 operations was set; the berthing efficiency of ships was reduced by 2.9 hours while in port, and the berthing efficiency reached 1,110 tons/hour, an increase of 17% over the previous year; and the utilization rate of major production berths reached 70%, an increase of 2 percentage points. At the same time, the company reduced costs by deepening reforms and strengthening management, and departments of second-level units were reduced by 41% throughout the year; internal institutions were reduced by 20%, and the staffing of middle management was reduced by 17%, greatly improving management efficiency and responsiveness. The improvement in management efficiency has achieved the company's goal of strictly controlling expenses and costs. The company's costs increased by only 6% year on year, and gross margin increased by 4.66 percentage points to 21.52%. The commencement of key projects such as the transfer of coal from east to south in the Ishiusu port area will build a comprehensive “Belt and Road” port. The company is steadily advancing key projects such as the transfer of East Coal to the south, the South Three Jetty Wharf in the Ishiusu Port Area, Arannan #15 berth, and the supporting terminal for the Shangang Steel Boutique Base. It is expected to be completed within two to three years. Furthermore, the group is expected to promote the listing of the main port business as a whole and promote port construction projects such as containerization in the western part of the Ishiusu port area, large-scale crude oil terminals and supporting projects, LNG terminals in the northern part of the Arashiyama port area, cruise terminals, and port public infrastructure in due course. The company will build a “Belt and Road” integrated terminal in 2021, which will become an important global transit base for energy, raw materials and containers. Adjust profit forecasts and maintain “excess holdings” ratings. Considering the increase in the company's throughput and the extension of the depreciation period for some fixed assets, we raised our profit forecasts for 2018 and 19. The estimated net profit from 2018 to 2020 was 613 million yuan, 679 million yuan, and 779 million yuan (the original 18 and 19 forecasts were 381 million yuan and 415 million yuan), corresponding to current stock prices of 19 times, 17 times, and 15 times, respectively. Maintain the “Overweight” rating. Risk warning: Cargo throughput falls short of expectations.