Revenue for the first 3 quarters remained flat year on year, and net profit fell 10% year on year, lower than market expectations. The company's revenue for the first 3 quarters was 2,777 billion yuan, flat year on year, and net profit to mother was 390 million yuan, -10% year on year. Q3 revenue was 925 million yuan, -3% YoY, and net profit to mother was 126 million yuan, -18% YoY. The company's gross profit margin for the first three quarters was 30.61%, down 2.22pct year on year, net profit margin was 14.04%, down 1.58pct year on year. The company's Q3 gross profit margin was 28.33%, down 4.78pct year on year, net profit margin 13.56%, down 2.37pct year on year. Prices of the company's ASP products are expected to drop year-on-year, mainly due to adverse factors such as the macro trade environment, which is the main reason for the decline in the company's gross margin and net profit margin. 5G PCB products are gradually being shipped. It is expected that the fourth quarter will usher in the PCB board business during the harvest period: considering macro-environmental factors and the settlement of a single batch order from a major customer in the second quarter, it is estimated that the average product price in Q3 fell by about 3%, leading to a sharp decline in product gross margin. Samples of 5G high-frequency high-speed boards have progressed smoothly since the 3rd quarter. It is expected that the 4th quarter will usher in a harvest period. Currently, the company's 5G customers include ZTE, Firefight, Potian, CommScope (CommScope), and Calix. FPC business: Currently, the net profit for the first three quarters of the Sandeoguan Championship is estimated at over 100 million. Currently, the monthly output value exceeds 100 million, and the net interest rate is about 13%. It continues to maintain good profitability. IC carrier board business: The company acquired 40% of Prowin's shares in June 2019, officially launched the IC carrier board field, and is currently in an active integration period. Various operating indicators remained stable, with a slight increase in the operating efficiency indicators of the 5G production capacity investment company. The cash/revenue received from sales products was 98%, a slight decrease of 2 pcts from month to month, the accounts receivable cycle was 71 days, down 1 day from month to month, and the number of inventory turnover days was 47 days, up 1 day from month to month. The various indicators showed that the operating conditions were relatively stable. According to balance sheet indicators, fixed assets were 2,054 billion, a slight increase compared with the beginning of the period. The projects under construction were 279 million, an increase of 55 million over the previous month. The company is expected to increase production capacity slightly to match 5G production capacity. High-quality companies with excellent management are given a “buy” rating. Due to adverse factors in the macro environment, we slightly lowered our profit forecast to achieve net profit of 568/690 million (611/744 million yuan) in 2019-2020. The current stock price corresponds to PE28x/23x in 19-20. Considering that 5G orders from the company's key customers are expected to be released in the future, we maintain the “buy” rating. Risk warning PCB industry boom falls short of expectations