Event: On October 28, Wuyang Parking released its 2019 three-quarter report. The first three quarters of 2019 achieved operating income of 876 million yuan, an increase of 33.84% over the same period last year, and net profit attributable to shareholders of the parent company of 121 million yuan, an increase of 35.16% over the same period last year. Benefiting from the construction of parking lots to repair shortcomings, the company ushered in continued high growth. As of 2019 H1, the company's core product, intelligent mechanical parking equipment, accounted for 62.75% of revenue. Benefiting from the construction of downstream parking lots to make up shortfalls, the company's orders ushered in rapid growth. Revenue confirmation led to a high revenue growth rate of 33.84% in the first three quarters; furthermore, the gross margin of intelligent three-dimensional parking equipment was higher than that of other complete production lines, installation services, mixing plants, etc., and the increase in the share of the three-dimensional parking equipment business is also expected to increase the company's profit level. Furthermore, with the arrival of the peak Q4 revenue recognition season, the company's Q4 performance growth rate is expected to increase further. Advance payments surged by 56.16%, and the trend of new orders being signed is encouraging. As of the 2019 three-quarter report, the company's inventory was 389 million yuan, an increase of 28.38% over the previous year; advance payments were 228 million yuan, an increase of 56.16% over the previous year. In addition, the company's prepaid accounts amounted to 58 million yuan, an increase of 42.17% over the same period last year. We published a report in September 2018, judging that “there have been positive changes at the micro level of the industry, leading orders segmentation, and an explosion in performance”. The company's trend in signing new orders is good, which once again validates our forward-looking judgment. Furthermore, the company's cash flow has improved markedly, and future correction can be expected. Bidding in the industry is showing a good upward trend, with significant volume and price increases. According to statistics from China's parking network, the bidding projects for 2018Q1, 2018Q2, 2018Q3, 2018Q4, 2019Q1,, for multi-storey garages reached 502, 706, 857, 777, 618, 732, and 966 respectively (statistical caliber not adjusted), with year-on-year increases of 1.6%, 7.8%, 8.1%, 9.1%, 23.1%, 3.7%, and 12.72%, respectively, showing a positive trend of acceleration; and in terms of the amount of individual projects, there is an upward trend. 2019Q2 2019Q3 Judging from the winning projects, the Q1-Q3 company won the bid for 52 projects in 2019. The company's competitiveness is outstanding, and it still maintains its leading position in the industry. Profit forecast and rating: The company has sufficient orders and a full production schedule. We adjusted the company's profit forecast. We expect the EPS for 2019-2021 to be 0.32/ 0.41/0.55 yuan, and the PE corresponding to October 28 is 20x/16x/12x. The company's competitiveness in the rapidly growing three-dimensional garage industry is clear and outstanding. Considering the company's strong performance certainty and undervaluation, it maintains a “prudent increase in holdings” rating. Risk warning: Major changes in macroeconomic policies; order execution and confirmation progress is lower than expected; operating project progress falls short of expectations; risk of bad debts on accounts receivable; risk of loss of goodwill.