Matters: Zhongheng Design released its report for the third quarter of 2018. During the reporting period, the company achieved revenue of 1,054 billion yuan, an increase of 25.3% over the previous year. Excluding the impact of investment income in the same period last year, net profit withheld by the mother increased 27.44% year on year, which is basically in line with expectations. The company expects EPS for 2018-2020 to be 0.75/0.97/1.30 yuan. Maintain the target price of 20.24 yuan and maintain the “push” rating. Comment: Advance payments have increased dramatically, and Q4 performance is guaranteed. In the first three quarters, the company achieved net non-net profit of 113 million yuan, excluding the impact of 11.2725 million yuan in dividends received from Drury Hengfeng in the same period last year, an increase of 27.44% over the same period last year. The company's advance payment at the end of the period was 208 million yuan, a sharp increase of 114.14% compared to the beginning of the period. The main reason for the large increase in advance payment was the increase in advance design fees. We judge that orders in hand are still growing rapidly, and Q4 performance is guaranteed. We believe that under the general trend of architect responsibility, in the future, companies are expected to obtain more orders with the service capabilities of the entire architectural design industry chain. Actively promote share repurchases, and equity incentives demonstrate confidence. The company recently disclosed that it has repurchased a total of 4,418,400 shares, with a repurchase price range of 9.08-10.6 yuan. The number of shares the company plans to repurchase is no more than 5.2 million shares, accounting for 1.89% of the company's current total share capital, and the repurchase price is no more than 17.67 yuan/share. The repurchased shares are intended to be used to grant restricted shares to 261 incentive recipients. The equity incentives will effectively mobilize the enthusiasm of the company's middle and senior management and core employees, demonstrating the company's confidence in future development. The steady progress of regional plans such as Xiong'an New Area is expected to open up a wider market space for the company. The “Hebei Xiong'an New Area Plan Outline” reflects the fact that early planning and design for the future construction of the new district has received great attention. The company has set up a Beijing branch to be responsible for expanding Xiong'an New Area business. Recently, planning for the Hainan Free Trade Zone has progressed steadily, and the plan outline for the Guangdong-Hong Kong-Macao Greater Bay Area will soon be introduced. In the first half of the year, the company was also shortlisted as an international bidding agency for the Hainan Free Trade Zone Key Pilot Regional Concept Plan in the first half of the year. We believe that as an enterprise in the entire design and construction industry chain starting from park development, the company's architectural design capabilities are in a leading position in the industry. Potential business development in these regions is expected to open up a wider market space for the company. Profit forecast, valuation and investment rating: Based on the company's current orders and broad future market space, we expect the company to return net profit of 2.08/2.66/359 million yuan in 2018-2020, corresponding to EPS of 0.75/0.97/1.30 yuan, maintaining the target price of 20.24 yuan and maintaining the “push push” rating. Risk warning: The progress of urbanization falls short of expectations; progress in regional planning and construction and business development falls short of expectations.