Summary:

Event: on October 27, the company released its quarterly report for 2017. during the reporting period, the company achieved operating income of 2.611 billion yuan, down 3.66% from the same period last year, net profit of 90.4137 million yuan, down 29.9134% from the same period last year, and earnings per share of 0.16 yuan.

Comments: in the first three quarters, the company's non-recurrent profit and loss and the investment income of China Resources Tangshan Power Plant decreased, resulting in a decline in the company's performance compared with the same period last year. As the company stripped off its bus operation assets in 2016, it received a transfer price of 11.37 million yuan, but not in this period, resulting in a year-on-year decline in revenue from the automobile operation business. However, in the first three quarters, the company's gas sales increased steadily, and the company's gas business accounted for 70% of the total in Nanjing. In the future, the company will actively develop gas business in the direction of distributed energy, and make full use of the opportunity of epitaxial mergers and acquisitions to become bigger and stronger.

During the reporting period, the company's gas, real estate and other main industries developed steadily, at the same time, actively expand the new energy vehicle charging pile business, involved in the environmental industry, the business scale is expected to continue to expand.

In the future, the company will make full use of the advantages of its capital platform as a listed company and the resource advantages of controlling shareholders to actively seek assets and projects with high industrial relevance to ensure the steady growth of the company's operating performance.

Performance forecast: we expect the company's earnings per share in 2017, 2018 and 2019 to be 0.29,0.31 and 0.32 yuan respectively, because the current stock price has dropped more than at the beginning of the year, and the valuation is in a reasonable range.

Risk analysis: 1) policy risk; 2) the impact of the Internet and the diversification of citizens' travel demand structure, the traditional taxi operation is facing challenges; 3) market competition risk.