Event: the company announced that the total operating income in the first three quarters of 2018 was 579 million yuan, an increase of 34.97% over the same period last year; the net profit of shareholders belonging to the parent company was 305 million yuan, up 67.05% from the same period last year; and the net profit returned to the parent in a single quarter was 134 million yuan, an increase of 23% over the previous quarter.

In the first three quarters of the AMC business, the company achieved a total operating income of 579 million yuan, an increase of 34.97% over the same period last year; the net profit of shareholders belonging to the parent company was 305 million yuan, an increase of 67.05% over the same period last year, mainly due to the increase in business income from restructuring services and management services in the AMC sector, of which 85 per cent were revenue from restructuring services and management services. In addition, with the end of the year approaching, the company's AMC business will gradually enter the performance release cycle, business growth will accelerate, and there is no problem of high performance growth for the whole year.

The strength of the reorganization service has been proved that the future business expansion can be in the field of AMC business, which is relatively complex and technically difficult, but it is also a business with higher competition barriers and higher gross profit margin. Within 2 years, the company has successfully operated Shanghai Steel Trade Company, a real estate project in Jiangsu and a food company project in Wuxi, which to a certain extent proved the strength of the company's team in the field of restructuring services. In the context of the overall macroeconomic restructuring, we believe that the demand for restructuring services will show a growing trend. At present, the company has completed the framework of the AMC management platform and the national strategic layout of the asset management team, and the future business expansion is worth looking forward to.

The non-performing supply is still sufficient. At present, the problem of asset quality in the banking industry is still serious. According to the CBIC, the balance of non-performing loans of commercial banks at the end of the second quarter of 18 was 1.96 trillion, an increase of 15.3 per cent over the beginning of the year, and the non-performing loan ratio also rose from 1.74 per cent to 1.86 per cent. In addition, under the pressure of the economic downturn, regulators intend to promote the bad clearing of the banking system in order to vacate more credit resources. In this context, non-performing asset management plate business opportunities are expected to increase.

Investment advice: maintain recommendations.

Risk hint: AMC business progress is not as expected; refinery project progress is not as expected