Investment highlights: The results for the first three quarters of 2018 were impressive. The company's cumulative total operating income for the first three quarters of 2018 was 1,365 billion yuan, up 87.37% year on year, gross profit margin 64.52%, up 8.88 percentage points, net profit was 291 million yuan, up 43.44% year on year, net profit was 304 million yuan, up 52% year on year, and earnings per share of 0.27. For example, based on the latest total share capital, earnings per share for the same period of 17 years, up 52% year on year. The scale of assets has been growing steadily, and land purchases have reduced cash on the books. As of 2018, the total assets of Q3 companies reached 13.48 billion yuan, an increase of 19.08% over the end of 2017, and the net assets attributable to shareholders of listed companies were 6.482 billion yuan, an increase of 2% over the end of 2017. The company's book cash fell from 5.954 billion yuan at the beginning of the year to 3.434 billion yuan, a decline of 42.32%. The decline in cash was mainly due to the company's increase in cash payments for land resources. The Nanjing International Cyberport is progressing smoothly. As early as September 2016, the company signed a letter of intent for strategic cooperation with the Tiebei Hongshan New Town Management Committee of Xuanwu District of Nanjing to build an “Electronic City Nanjing International Cyberport” with mobile Internet, mobile communications, and artificial intelligence as the core fields of mobile Internet, mobile communications, and artificial intelligence in Nanjing. In June 2018, the company obtained plot B west of Hengjia Road, Hongshan Street, Xuanwu District, Nanjing, at a price of 3.42 billion yuan. The nature of use of the plot was mixed commercial and residential land and mixed commercial land. The area covered was 853,000 square meters, the planned construction area was 108,400 square meters, and the average floor price was about 13,730 yuan per square meter, with a premium rate of 0%. In September 2018, the company completed the project company establishment and project filing for the Nanjing International Cyberport, obtained a land certificate, and completed the plan design. Join WeWork to build a global community. In June 2018, the company joined hands with WeWork to build the “e-City, WeWork” global community to further promote technology services. WeWork is a pioneer of global coworking. Founded in 2010 in New York, WeWork now covers 77 cities and has more than 280 office locations around the world. This cooperation between E-City and WeWork is a powerful alliance between China and foreign countries. Electronic City has a number of science and technology industrial parks and high-quality property resources in Beijing, Tianjin, Shanxi Shuozhou, Kunming, Xiamen, and Nanjing. WeWork, on the other hand, has extensive experience in supporting innovation and entrepreneurship, introducing overseas companies, connecting with international resources, and creating a high-quality office environment. Furthermore, both parties are owned by Lenovo (Lenovo Holdings participated in Wework in March 2016). Shareholders have the same long-term interests, which is conducive to synergy between the two sides. Investment advice: “Better than the market”. The company continues to advance the strategy of “based in Beijing, radiating the whole country” in an orderly manner, and is jointly promoting the construction of science and technology parks, which will help the company build new self-owned properties in the future to win the favor of high-quality enterprises, which in turn will contribute to stable rental income. We predict that the company's EPS in 2018 will be 0.58 yuan/share, giving the company 10-12 times PE in 2018. The corresponding market value range is 64.45-7.734 billion yuan, the corresponding reasonable value range is about 5.76-6.91 yuan/share, and the corresponding PEG is about 0.47-0.56, giving it a “superior to the market” rating. Risk warning: The construction cycle of new technology parks is long, which in turn affects the company's performance.