Guide to this report: The results of the three-quarter report fell short of expectations, and Hitachi Elevator's investment income fell short of expectations. Benefiting from the recovery of the elevator industry and catalytic policies to replace old elevators, the company's and Hitachi Elevator's profits are expected to grow steadily. Key investment points: Conclusion: The results of the three-quarter report fell short of expectations, and Hitachi Elevator's investment income fell short of expectations. Improved cash flow from operating activities. Benefiting from the recovery of the elevator industry and catalytic policies to replace old elevators, the company's and Hitachi Elevator's profits are expected to grow steadily. Considering that the company's three-quarter report performance was lower than expected, the 2019-2021 EPS was lowered to 0.51 (-0.12), 0.63 (-0.07), and 0.69 (-0.04) yuan, maintaining the target price at 11.4 yuan and increasing holdings. The company's three-quarter report performance fell short of expectations, and Hitachi Elevator's investment income fell short of expectations. ① The company reported revenue of 4.53 billion yuan for the third quarter of 2019, up 11.9% year on year; net profit from net profit of 361 million yuan, up 38.8% year on year; net profit after deduction of 340 million yuan, up 63.7% year on year; performance fell short of expectations. Among them, the investment income of the joint venture company mainly contributed to Hitachi Elevator, which was 300 million yuan in the first three quarters; investment income for the single quarter was 113 million yuan, Q2 was 126 million yuan, and Q3 was 61 million yuan. Hitachi Elevator's Q3 investment income fell short of expectations, down 25% year over year in a single quarter. ② After deducting the investment income of associated companies, the company's main business deducted non-net interest rate was 0.88%, an improvement of 0.2 percentage points over the previous month. ③ Net cash flow from operating activities in the first three quarters was $138 million, a significant improvement over the previous year. The elevator industry is picking up, and Hitachi elevator profits are expected to grow steadily. ① Looking at China from Hitachi's point of view, demand for maintenance, renewal, and transformation is gradually being released. In Hitachi's global elevator business, China accounts for 53% of revenue. In 2018, Hitachi ranked first in the market for new elevator installation orders in China. ② The company provides spare parts for Hitachi Elevators, and the growth rate of the company's related transactions with Hitachi Elevators in 2019 increased from 3.5% to 20%. It confirms Hitachi Elevator's high revenue growth, and investment income boosts the company's performance. Catalyst: Old elevator replacement policy. Risk warning: There is a risk of a sharp decline in new real estate starts, increased competition in the industry, and a decline in investment returns.