Core Opinions The company released its three-year report on October 26. 1-3Q2020 achieved revenue of 320.9 billion yuan, +9% year-on-year; net profit of 12 billion yuan, +2% year-on-year; net profit after deduction of 12 billion yuan; and net profit of 12 billion yuan, an increase of 16% over the previous year. The company's real estate delivery increased steadily, and infrastructure seizes opportunities. The year-on-year growth rate of net profit in the first three quarters was corrected for the first time in the year. Sales resumed positive growth in the third quarter, land acquisition intensity increased quarter by quarter, and balance and liability structure was optimized. We expect EPS in 20-22 to be 1.34, 1.67, and 2.05 yuan, with a target price of 8.98 yuan, maintaining the “buy” rating. Real estate delivery+infrastructure seizes opportunities. The year-on-year growth rate of net profit for the first time in the year returned to the real estate business: the 1-3Q2020 company's contract delivery area was 14.93 million square meters, +27% year-on-year, driving real estate revenue +15% to 144.6 billion yuan, and total profit +3% to 22.8 billion yuan. Infrastructure business: Seizing the opportunities for centralized launch of “two new and one priority” projects, the amount of new contracts signed was +46% to 399.1 billion yuan, revenue +9% to 183.1 billion yuan, total profit +36% to 4.7 billion yuan, and the acquisition of 66% of Guangxi Construction Engineering's shares at the end of August. Supported by strong third-quarter results, the company's net profit growth rate for the first time in the year was corrected for the first time in the year. The year-on-year growth rate of net profit was lower than the revenue growth rate, and the growth rate of net profit after deducting non-return net profit was higher, mainly because 2019 Q3 obtained control from Jisheng Weibang and re-measured the original long-term equity investment (non-recurring) investment income of 2.1 billion yuan. Sales resumed positive growth in the third quarter, and land acquisition intensity increased quarter by quarter. Affected by the epidemic, the new construction and promotion area of the 1-3Q2020 company fell 30% and 17% year on year, resulting in a sales area of -17% year over year to 17.61 million square meters, and sales volume -7% to 217.9 billion yuan. However, in Q3, by vigorously promoting additional supply and paying close attention to the elimination of stock projects, the sales situation improved markedly. The sales area and sales amount increased 16% and 27% year-on-year in a single quarter. 1-3Q2020 added -16% of the planned construction volume to 24.15 million square meters (equity ratio: 91%), and the total land price was +4% to 81.3 billion yuan. Land acquisition intensity increased quarterly, with an additional value of 280 billion yuan. Of these, 66% were located in Tier 1 and 2 cities, a further increase from 51% in the first half of the year. The company plans to develop and construct land reserves of 0.47 million square meters and 148 million square meters respectively, with sufficient reserve resources. The balance and liability structure has been optimized. As of 2020Q3, the company's interest-bearing liabilities have declined slightly by 2% compared to 2020H1, the net debt ratio has decreased by 2pct to 183%, the balance ratio after deducting advance accounts has decreased by 1pct to 82%, the short-term debt coverage rate has increased by 6pct to 78%, and the overall average financing cost has decreased by 0.07pct to 5.59%, all of which are improving. The trade industry is growing rapidly: for the first time, Greenland Global Trade Port has become an exhibitor in the CIIE Group, and will organize brands from 16 countries to participate in the 3rd CIIE; the extended nationwide layout has been further promoted. A total of 4 trade ports have been opened and 10 are under construction; Q3 international trade has added 1.6 billion yuan in orders, while actively seeking to establish a supply chain headquarters and settlement center in Hainan. Operating indicators have improved markedly. Maintaining the “buy” rating, we maintain the company's profit forecast for 20-22 EPS of 1.34, 1.67, and 2.05 yuan. Referring to comparable companies' 2020 PE valuation of 6.8 times (Wind's unanimous expectations), we maintain the company's reasonable PE valuation level in 2020 at 6.7 times and a target price of 8.98 yuan, maintaining the “buy” rating. Risk warning: epidemic risk, industry policy risk, downturn industry sales risk, capital chain risk.