Incident: (1) The company announced its 2018 three-quarter report, with revenue of 2.76 billion yuan for the first three quarters, YOY +37.24%, net profit to mother of 130 million yuan, YOY +158.90%, after deducting non-net profit of 127 million yuan and YOY +202.18%. (2) The company's Q3 revenue in a single quarter was 1.03 billion yuan, YOY +41.05%, net profit of 795.23 million yuan, YOY +123.30%, after deducting non-net profit of 81.792 million yuan, YOY +150.13%. (3) The company announced the annual performance forecast. Net profit returned to mother in 2018 was 1.92-215 million yuan, YOY +170%-190%. Comment: 1. The original main business grew steadily. The third quarter entered the peak enrollment period of the Mars Era. Net profit grew 123% year-on-year and 116% month-on-month: (1) Revenue of 2.76 billion yuan (YOY +37.24%) in the first three quarters, mainly due to steady growth in production and sales in the feed sector, and Mars mergers and acquisitions; net profit of 130 million yuan (YOY +158.90%), net profit from non-return mother was 127 million yuan (YOY +202.18%). (2) The overall cost rate for the first three quarters was 15.79%, of which sales expenses were 175 million yuan (YOY +138.03%); management expenses were 182 million yuan (YOY +89.39%); and financial expenses were 5.634 million yuan (YOY -77.15%). (3) The balance of FY18Q3 accounts receivable at the end of the period was 130 million yuan, an increase of 9.5796 million yuan over the end of the previous year, an increase of 7.98%; the cash received by FY18Q3 from selling goods and providing services was 884 million yuan (YOY +32.1%), and the net operating cash flow was 138.764 million yuan. 2. The education business progressed rapidly, with the acquisition of Kaimo Vision and the establishment of cooperative universities to open up new profit growth points: (1) The Mars Era had about 30 educational products, and 15 offline teaching centers were set up in 13 cities in northern Guangzhou, and the employment rate was steadily increasing. According to our estimates, the net profit range for Mars in 2018 was 103 million to 139 million yuan, and there is a high probability that it will exceed performance promises. (2) The acquisition of 80% of Kaimo Vision's shares with 340 million yuan in cash has a great synergy effect. (3) In cooperation with Guangxi College of Information Technology, it is planned to jointly establish the Digital Art School of Guangxi Institute of Information Technology. The cooperation period is 20 years. The total working capital provided by both parties is 10 million yuan, Baiyang shares pay 5.5 million yuan, and the operating balance is distributed on an annual basis according to the proportion of working capital provided, with an enrollment target of 3,000 students. 3. Profit forecast and investment advice: The estimated net profit for 18-20 is 1.96/2.54/326 million yuan, corresponding to PE of 15.6/12.1/9.4X, maintaining the “recommended” rating. 4. Risk warning: risks such as impairment of goodwill, downstream industry development falling short of expectations, brain loss, mergers and acquisitions, operation management, student loan default, and downward shift in the industry valuation center.