Event: The company recently announced the results for January-September 2019: Revenue from January to September 2019 was 4,526 million yuan, up 11.92% year on year, and net profit attributable to shareholders of listed companies was 361 million yuan, up 38.85% from the same period last year. Net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was $340 million, an increase of 63.7% over the previous year. Comment: Hitachi's investment income contributed significantly, and the company's cash flow improved significantly: the company mainly engages in elevator sales and maintenance, elevator parts, etc. According to business classification, elevator components, intelligent manufacturing equipment, LED, logistics, packaging, installation and maintenance accounted for 44.51%, 28.69%, 1.83%, 142%, 8.83%, 6.52%, and 6.1% of revenue in 2018. The increase in revenue is mainly due to the increase in production and sales volume compared to the same period last year. The rapid increase in profit side is mainly due to the increase in investment income brought by Hitachi. The investment income from January to September 2019 reached 325 million yuan, and the investment income for January to September 2018 was only 169 million yuan, up 92.3% year on year, mainly due to the improvement in Hitachi's operating conditions, while the headquarters saw that Hitachi achieved revenue of 4,526 billion yuan (+11.92%) from January to September 2019, gross margin was 13.81%, up 0.06pct year on year. On the cost side, management expenses, sales expenses, financial expenses, and R&D expenses were 2.9 (+0.55%), 1.23 (+5.4%), -0.16, and 1.72 (+22.2%), respectively. Judging from the balance sheet, the company's inventory for January-September 2019 was 905 million yuan, up 9% year on year, advance revenue was 671 million yuan, up 13.5% year on year, and 5.83% month on month, still reflecting the good order situation of the company. Judging from the cash flow situation, net cash flow from operating activities reached 138 million yuan, an increase of 529.66% over the previous year. Competition intensified, further seizing market share: From January to September 2019, the country's cumulative elevator production increased 15.8% year on year, but steel prices during the same period were still high compared to previous years. First-tier brands began to seize the middle and lower end markets through price competition and market expansion, further squeezing the living space of second-tier and third-tier elevator brands. The elevator market as a whole is facing greater operating pressure. The company has good capital strength and is expected to further seize market share. According to grassroots research, company prices have remained stable since this year. The rest of the business has maintained steady development: the company has carried out a certain diversified layout. We expect all main businesses to develop steadily, and Songxing Electric is expected to experience relatively rapid growth. 1. Songxing Electric has made some achievements in cross-industry layout this year, mainly some intelligent inspection equipment for high-speed rail. The EMU underbody inspection robot system developed by the holding subsidiary Songxing Electric passed the final technical review of China Railway Corporation in March of this year. In September 2019, Songxing Electric and Hong Kong Railway (MTR) collaborated to develop an intelligent axle inspection system and an intelligent relay detection system. The first underbody inspection robot was delivered in February 2019. 2. LED business: To maintain steady development, the company is cautious about accurate qualifications and payment requirements. 3. Three-dimensional garage: The company has outstanding technical advantages. Since this year, the company has received three-dimensional warehouse projects in Guiyang, Guangzhou and other places. 4. The maintenance business will grow rapidly in recent years, and maintenance services have good profitability. Profitability forecasts and valuations. We expect the company's net profit attributable to shareholders of the parent company in 19-21 to be 4.77, 6.67, and 790 million, respectively, and EPS of 0.55, 0.78, and 0.92, respectively, with corresponding valuations of 15, 11, and 9 times, maintaining an increase in holdings rating. Risk warning: Downstream completion end progress falls short of expectations; industrial price war intensifies