1. Event Overview According to the company's 2019 three-quarter report, by the end of the third quarter, the company had achieved operating income of 819 million yuan, an increase of 63.35% over the same period last year, net profit attributable to listed shareholders was 1994 million yuan, a decrease of 75.36% year on year, and net profit after deducting 12.14 million yuan, a year-on-year decrease of 83.23%. 2. Analysis and judgment revenue grew steadily. The Q3 quarter performance was outstanding. The company achieved operating income of 819 million yuan in the first three quarters, an increase of 63.35% over the same period last year. The third quarter achieved revenue of 509 million yuan, a year-on-year increase of 145.52%, and net profit of 90.76 million yuan, an increase of 244.27% over the previous year. The significant increase in revenue and profit brought about by the confirmation of project revenue in the third quarter marks that the company is expected to reach an inflection point in performance. While there are still a large number of projects in the future and revenue has not been confirmed, it is expected that future performance will be further improved. At the same time, the company's R&D investment increased by 102.14% over last year, and increased marketing efforts to provide strong support for performance. The leading enterprise advantage of emergency platforms is stable, and the company with huge potential for overseas business growth has seized favorable policy opportunities. The government and industry emergency platforms are advancing simultaneously. Provincial platforms have received new orders in various provinces such as Heilongjiang, Hubei and Yunnan. At the same time, emergency platforms at the local, district and county levels continue to expand and sign emergency platform projects at the city, district and county levels, such as Jiangyin City, Jieyang City, and Shunde District of Foshan; with the company's vigorous marketing, overseas business continues to expand, and the company has great potential for overseas business growth. The urban lifeline business continues to advance and accelerate the layout of the fire protection business With the successful operation of the Hefei project, the company's urban lifeline business has been successfully replicated from other locations, and the future growth space is extremely broad. Currently, the company has also signed new projects such as the Huaibei Safety Supervision Project (Phase I) and the 2019-2021 gas online monitoring equipment procurement and installation project for a group limited company in Beijing; in addition, the company has increased investment in R&D, introduced high-tech talents, and launched smart fire and fire cloud services to accelerate the construction of a fire safety industry system and achieve innovation and upgrading of the business model. 3. Investment advice As a leading enterprise in emergency platforms, revenue confirmation in the third quarter ushered in an inflection point in performance. Considering that the company still has a large number of projects in the future, we expect the company's net profit from 19-21 to be 217/3.1/404 million, EPS to 1.44/2.05/2.67 yuan, corresponding current price PE of 29/20/16 times, and the company currently has a valuation advantage. For the first time, we have given a “recommended” rating. 4. Risk warning: order verification falls short of expectations, overseas business falls short of expectations