Incident: On October 31, 2015, Mindong Electric Power released its three-quarter report. From January to September, the company achieved operating income of 740 million yuan, an increase of 11.88%; net profit attributable to shareholders of listed companies was 62 million yuan, a year-on-year decrease of 26.11%; and basic earnings per share were 0.1,654 yuan. Comment: Profits in the hydropower sector continue to decline, and the real estate sector supports the main revenue. The company's main business is hydropower and wind power generation. The company currently belongs to 11 hydroelectric power branches, 2 hydroelectric power holding subsidiaries, and 1 wind power generation holding subsidiary. The company completed hydropower generation and electricity sales in the first three quarters all decreased compared to the same period of the previous year. The main reason for the decrease was that rainfall decreased compared to the same period of the previous year; the company completed wind power generation and electricity sales also declined year-on-year compared to the same period last year, mainly due to reduced air volume and power restrictions. Operating costs from January to September '15 increased by 23.59% over the same period last year. The main reason was the increase in real estate sales area in the real estate industry during the reporting period and the increase in carry-over costs; the 11.88% increase in revenue in the first three quarters was mainly due to the increase in commercial housing sales revenue achieved by the company's real estate sector. The company suspended trading operations during the quarter. Ningde Huansan Industrial Co., Ltd., a wholly-owned subsidiary of the company. Its main business projects include steel, building materials, metal materials (excluding precious metals), decoration materials, plastic products, mechanical equipment and accessories, furniture sales and agency services. Starting in the second half of the year, the company decided to stop the subsidiary's trading business and carry out debt collection. Profit forecast and rating: We expect the company's 15-17 EPS to be 0.19 yuan, 0.20 yuan, and 0.24 yuan respectively, maintaining an “gain” rating. Risk factors: Precipitation dropped sharply, hydropower generation decreased; electricity prices fell short of expectations; real estate sales fell short of expectations; mining consolidation was slower than expected.