Expenses for the three major investment items have increased significantly, and the growth rate of performance has slowed down. In the first three quarters of 2018, the company achieved revenue of 578 million yuan (+20.52%), net profit to mother of 91 million yuan (+0.73% year over year), and achieved EPS of 0.14 yuan. The performance was in line with expectations. During the reporting period, the company's revenue growth was steady, and gross margin was basically the same as the same period last year. The sharp increase in the three expenses caused the net profit growth rate to be lower than the revenue growth rate. The company's endogenous growth momentum is sufficient, epitaxial expansion is progressing steadily, and future development prospects are promising. Aerospace electronics business: Benefiting from increased localization rates and rapid space development. The company is a benchmark enterprise for high-end aerospace processor SoC in China and a pioneer of three-dimensional packaged SIP aerospace modules/systems. It has been deeply involved in the aerospace electronics business for nearly 20 years and is leading the product technology industry. In October, the company successfully passed the Aerospace Science and Technology Aerospace Model Supporting Component Supplier Review and became a qualified supplier at the Aerospace Group level. The number of space launches in China is expected to exceed 35 times in 2018, or it may enter a high-density launch period. The company's products have a clear competitive advantage and are expected to fully benefit from the increase in the localization rate of aerospace chips in China and the rapid development of space. Satellite big data business: Increased constellation data collection capabilities are expected to gradually contribute to profits. In April of this year, 5 satellites of the “Zhuhai-1” 02 group were successfully launched. After networking with the first two satellites, the entire constellation's ability to collect hyperspectral data was added, and the diversity of satellite data was increased. China's commercial remote sensing satellite industry is expected to maintain a 35% growth rate in the next few years, and the overall geographical information industry is expected to grow to 800 billion yuan by 2020. In September, the company signed a strategic cooperation agreement with Hunan Broadcom to establish the Hunan “Zhuhai-1” satellite remote sensing application center. The company's satellite big data industry is progressing rapidly, and it is expected to gradually contribute to profits in the future. Security surveying and mapping business: Continued acceleration of layout is expected to become a major profit growth point. In the field of security, the subsidiary Boya Information relies on the parent company's resources to form large-scale output in Guizhou, and while consolidating and developing public security and judicial services with the largest industry customers, it also opens up markets such as medical care and education. In the field of surveying and mapping, the subsidiary Huiyu Intelligence continues to expand application markets such as real estate surveying and underground pipeline surveys. The security surveying and mapping business is expected to become an important profit growth point for the company in the future. Epitaxial expansion continues to advance, and the industrial structure is improving day by day. The company has raised 1,082 million yuan in capital, which will ensure the smooth implementation of the “Zhuhai No. 1” project. The company announced on August 14 that it plans to issue shares to acquire all or part of Baixin Blueprint and Zhejiang Hexin to further improve the geographical information surveying and mapping industry chain layout. Currently, related work is still progressing steadily; the subsidiary Boya Information plans to acquire 100% of the shares in “Guangzhou Yuanchao” with 123 million yuan in cash to further strengthen the security industry. The company's capital operation continues to deepen, and the industrial structure is expected to be further improved. Risk factors: The progress of the satellite constellation project falls short of expectations; product market expansion falls short of expectations; risk of losing technical personnel. Profit forecasting, valuation and investment ratings. Considering domestic alternative space in the field of aerospace electronics and the development prospects of the company's satellite big data business, we maintain the company's 2018/19/20 EPS forecast of 0.24/0.31/0.38 yuan. The company's current price is 8.53 yuan, corresponding to the 2018/19/20 PE of 35/28/23 times, respectively. The comprehensive industry maintains a “buy” rating, and the company's market position in aerospace electronics and satellite big data, with a target price of 10.5 yuan.