The performance was in line with expectations. Maintaining the “buy” rating, 1-9M19's net profit was +178% to 237%, in line with expectations. The main reason was a high increase in power generation and a decline in incoming coal prices. The 19Q3 company's power generation/sales volume was 55.7/5.22 billion kilowatt-hours, respectively, +14.7%/14.8% year-on-year. The main reason for the continued high growth in electricity consumption in Q3 was strong demand for electricity and weakening of the hydropower extrusion effect. Considering that power generation continues to improve, net profit from 19-21 was increased to 6.0/7.9/8.4 billion yuan (previous value: 4.6/7.8/8.3 billion yuan), and the 19-21 BPS is expected to be 3.61/4.19/4.76 yuan (previous value: 3.48/4.08/4.65 yuan). Considering that the operation of the Haoji Railway is expected to drive improved performance, a target PB of 1.6-1.8x in '19, and the target price is 5.77-6.49 yuan, maintaining the “buy” rating. Q3 power generation was +14.7% year-on-year, mainly due to the advent of the dry hydropower season + high electricity demand growth. According to the company announcement, the 19Q3 company completed 55.7/5.22 billion kilowatt-hours of electricity generation, +14.7%/14.8% compared with the same period last year. We believe that the main reason for the continued high growth in Q3 electricity consumption and the hydropower extrusion effect has weakened. According to data from the National Bureau of Statistics, the 7-8M19 Hubei society as a whole is +6.8%/-16.5%. According to our estimates, 19Q1-3's thermal power units used about 3,978 hours, of which 19Q1/19Q2/19Q3 were 1507/932/1539 hours, an increase of about 284/61/199 hours, respectively. We judge that the trend of high electricity consumption growth in Hubei is expected to continue in the future, and the utilization hours in 2019/20 will be raised appropriately to 5132/5182 (previous value: 4812/4862). The Q3 performance was in line with expectations, and the company is expected to fully benefit from the decline in coal prices in the future. According to the company's announcement, 1-9M19's net profit to mother was +178% to 237%. The performance was in line with expectations, mainly due to high growth in power generation capacity+falling coal prices. According to data from the National Development and Reform Commission, the average price of 7-8M19 electricity and coal in Hubei is 590 yuan/ton, compared to the 18Q3/19Q2 average price change of -46/-8 yuan/ton (vs Qinhuangdao Q5500 coal 7-8M19 average price 588 yuan/ton, compared with the 18Q3/19Q2 change of -45/-21 yuan/ton), Hubei's coal prices are high due to limited coal resources+inconvenient transportation. We judge that in the future, Hubei is expected to benefit from the operation of the Haoji Railway and the easing of domestic coal supply and demand. The decline continues. The Haoji Railway was officially opened. Starting in 2020, the company's fuel costs are expected to be significantly reduced. According to information disclosed by Xinhua News Agency, the Haoji Railway has already been opened before the National Day. Although the final transportation price is higher than market expectations, we believe that the Haoji Railway is expected to significantly increase the supply of coal in central China and shorten the time required to drive “Three West” coal to Hubei from more than a month to 1-3 days, thus favoring local coal cost control. The company's coal and electricity properties are pure, and it is expected to fully benefit from the decline in coal prices in the future. According to our estimates, if the Q5500 spot price in Qingang is -10 yuan/ton, the company's incoming coal price is expected to be -12.4 yuan/ton, driving the net profit to the mother to increase by 5525/ 56.36 million yuan in 2019-20, with increases of 12%/7% respectively. The profit forecast was raised to give a “buy” rating. Taking into account the continued improvement in power generation, we raised net profit from 19-21 to 6.0/7.9/8.4 billion yuan (previous value: 4.6/7.8/8.3 billion yuan), corresponding EPS to 0.55/0.72/0.76 yuan (previous value: 0.42/0.70/0.75 yuan), and BPS to 3.61/4.19/4.76 yuan (previous value: 3.48/4.08/4.65 yuan). The current stock price corresponds to the 19-21 P/E is 9/7/7x, and the P/B is 1.4/1.2/1.1x. For reference, the average P/B value of comparable companies in 2019 was 1.2x. Considering that the Haoji Railway operation is expected to improve performance, the company was given a target PB of 1.6-1.8x in '19, with a target price of 5.77-6.49 yuan, maintaining a “buy” rating. Risk warning: rising coal prices, adjustment of electricity prices, and incoming water squeezes the utilization hours of thermal power.