Event: The company announced its 2019 three-quarter report. The first three quarters achieved revenue of 3,037 billion yuan, a year-on-year increase of 15.55%, and net profit of 357 million yuan, a sharp increase of 418% over the previous year; of these, the third quarter achieved operating income of 268 million yuan, a year-on-year decrease of 14.14%; net profit of 1,074 million yuan, a year-on-year increase of 101.46%. Comment: 1. Revenue growth has accelerated, and coverage has continued to expand. The company's revenue increased slightly in the first three quarters, while net profit increased sharply. On the one hand, the 2018 base was low, the company's restorative growth in 2019, while at the same time, costs declined, and the company's ability to have certain pricing power, which led to a sharp rise in gross margin by 5.1 percentage points even under the influence of trade friction. In addition, in response to trade disputes between China and the US, the company made marketing strategy adjustments, and continued to deepen its cultivation in the European market. Sales of outdoor leisure and household goods business in Europe and the US all rose.” The situation of “standing on three legs” gradually took shape. At the same time, the company continues to improve its raw material supply system and expand its market share in high-end tents and umbrellas. The company's internal efficiency has improved, and operating costs have decreased slightly. The company's Q3 quarterly revenue remained stable. Net profit increased by 101.46% year on year due to investment income and decreased by 106.81% year on year after deducting non-net profit. 2. Profitability has clearly rebounded, and channel expansion has steadily advanced Q3 with a comprehensive gross profit margin of 27.91% and a net sales profit margin of 11.76%, a significant increase over the previous year. The furniture manufacturing industry has been affected by the double adverse factors of industry downturn and increased competition, and development has been slow in recent years. The company's 2019 sales revenue increased compared to 2018. At the same time, due to a combination of factors such as fluctuations in the RMB exchange rate and increased production efficiency, the company's gross margin increased. At the same time, the company has developed other winter outdoor products such as outdoor stoves based on objective factors such as high product seasonality. Orders are expected to reach a level of around 200 million, which has also partially leveled off seasonal revenue fluctuations, so the company's performance improved quite markedly in 2019. 3. The expansion of the product range, the depreciation of the local currency brought about a sharp recovery in profits. Maintaining the “Highly Recommended -A” rating company as a leading enterprise in the field of outdoor leisure furniture, corporate product specifications, customer channels, and product price systems, etc., the expansion of product categories in 2019, the depreciation of the local currency, and a sharp recovery in investment income brought about a sharp recovery in profit throughout the year. We expect net profit from 2019 to 2021 to be 504 million, 583 million, and 689 million yuan, corresponding to the current PE of only 15.5 times, maintaining “highly recommended” -A” investment rating. Risk warning: The downward pressure on the industry is increasing, and there is a risk of RMB appreciation.