Incident: The company released a performance forecast for the first three quarters of 2019: during the reporting period, the company achieved net profit attributable to shareholders of listed companies of 17 million yuan to 23 million yuan, a decrease of 72% to 79%. Among them, net profit attributable to shareholders of listed companies was 87.83 million yuan to 93.83 million yuan in the third quarter, an increase of 233% to 256% over the same period. Growth in Q3 was high, with sufficient orders in hand. In the first half of the year, the company experienced a sharp decline in performance due to delays in revenue recognition and significant staff expansion. However, at the same time, the company introduced 19 new doctorates, 128 master's degrees, and 67 middle and senior professionals, which is based on a forward-looking layout based on future business expectations. Q3 showed clear performance elasticity in the single quarter as project completion revenue achieved a significant increase in revenue. The company has sufficient orders in hand, laying a good foundation for high growth. However, it cannot be overlooked that the company's business is highly seasonal, and subsequent progress still needs to be closely tracked. Urban Lifeline's offsite expansion continues to be implemented. Overseas market performance may be expected to gradually implement the Huaibei City Safety Supervision Project in the first half of the year, the 2019-2021 gas online monitoring equipment procurement and installation project of a Beijing Group Co., Ltd., the Tongling Underground Pipeline Network Informatization and Safe Operation Monitoring System project, and the “Smart Jiangxia” One Center and Two Platform Project at the end of September, with a project value of 110 million yuan. At the same time, the overseas market company signed a new contract for the “911 Emergency Response System” project in Dominica in North America. In addition, CLP Import and Export has helped the company's important strategic shareholders expand overseas markets, and subsequent overseas market performance may be expected. Investment advice: Maintain the company's 2019-2021 EPS at 0.88, 1.13, and 1.39 yuan/share, respectively. Maintaining a “buy” rating based on optimism about the company's urban lifeline business offsite expansion potential. Risk warning: There is a risk that the pace of revenue confirmation from overseas orders falls short of expectations, and that the expansion of the city's lifeline offsite does not meet expectations.