The company announced its report for the third quarter of 2020, and the company's Q3 performance grew rapidly. In the first three quarters of 2020, the company achieved operating income of 11.492 billion yuan, a year-on-year increase of 15.73%, net profit of 462 million yuan, a year-on-year decrease of 5.45%, and net profit of 435 million yuan, a year-on-year decrease of 8.02%. In the single quarter of 2020Q3, the company achieved operating income of 4.969 billion yuan, an increase of 23.80% over the previous year, net profit of 180 million yuan, an increase of 23.03% over the previous year, and realized net profit of 173 million yuan, an increase of 23.12% over the previous year. Q3 The performance growth rate turned negative to positive. The company's performance has benefited from a recovery in prosperity, and the company continues to strengthen cost control. The global novel coronavirus pneumonia epidemic has affected the resumption of work and production and the recovery of prosperity in the upstream and downstream electronics industry chain to a certain extent, but we judge that the impact of the epidemic has marginally improved. The third quarter ushered in a boom cycle recovery, and the company achieved a positive performance growth rate based on its core competitive advantage. In terms of expenses, although the company's gross margin declined slightly year-on-year in the first three quarters, by about 1.71 pct, the company's 2020Q1 sales+management+distribution expenses fell 5.54% year-on-year, thanks to the company's strengthened cost control. Looking forward to the future, the growth trend of leading distribution companies remains unchanged, and we are optimistic that the company will grow in the long term with its core competitive advantages. On the one hand, domestic distributors benefit from the growth opportunities of the overall electronics industry brought about by downstream demand, and on the other hand, embrace the domestic substitution wave driven by strong domestic demand. Judging from the competitive landscape, mergers, acquisitions and restructuring promote the integration of the distribution industry, and its leading manufacturers will become strong, while Shenzhen Huaqiang has excellent core competitiveness in terms of resources, technology, scale, management, model, and location. The acquired subsidiaries are of excellent quality and are expected to stand out and continue to grow. Earnings forecasts and ratings. We are optimistic that the company, as a distribution leader, will embrace future opportunities and achieve the long-term growth score of the strong one. Instead, it is estimated that the 0 G.6 division 6/02.08-22/21 is 10 E yuan P in the year, and the PE corresponding to S is 21.81/17.59/13.13 times. Referring to comparable company valuations, a PE valuation of 30 times the corresponding 20-year performance, corresponding to a reasonable value of 19.88 yuan/share, was given a “buy” rating. Risk warning. The declining cycle and growth of the electronics industry fell short of expectations; the progress of 5G progress fell short of expectations; the development of emerging fields such as automotive electronics fell short of expectations; and industry competition increased risks.