Core view: The catalyst business has declined sharply, and investment income accounts for a high share of performance. The company achieved operating income of 1,736 billion yuan in the first half of the year, a year-on-year decrease of 3.09%; net profit attributable to shareholders of listed companies was 230 million yuan, an increase of 27.68% over the previous year. This includes investment income from a reduction in Southwest Securities holdings of about 174 million yuan; earnings per share of 0.38 yuan. The main reason that dragged down performance was the sharp decline in revenue and profit margins in the denitrification catalyst business. The volume and price of the catalyst business plummeted, which was the main factor dragging down performance. By business, due to the sharp drop in volume and price in the denitrification catalyst industry, denitrification catalyst revenue was only 89 million yuan, down 83% year on year, and total profit fell 92% to only 12.31 million yuan; revenue from environmental protection projects was 1,046 million yuan, up 2.8% year on year, but due to many technical improvement projects, gross margin fell 6.81% year on year; the franchise business benefited from increased sales and consolidated revenue of 712 million yuan, up 99% year on year. Ultra-clean emissions, franchising, etc. have maintained a high level of prosperity, and sustainable growth is strong. As of June '15, 22 projects have been put into operation, with a total installed capacity of 30.32 million kilowatts, including 16.4 million kW of desulfurization and 13.92 million kW of denitrification. We expect the ultra-clean emissions market in the power industry to remain booming, and the BOT model is expected to be further promoted. As an environmental protection platform under China Power Investment, the company's power environmental protection engineering and operation business will continue to grow steadily. China Power Investment is the only environmental protection platform, and expectations for state-owned enterprise reform and business expansion are strong. The company's 15-17 EPS is estimated to be 0.61 yuan, 0.45 yuan, and 0.51 yuan respectively. The company's original power environmental protection business will maintain steady growth. It is the only environmental protection platform under China Power Investment. In particular, after the merger of China Power Investment and National Nuclear Power, it is expected that it will begin to gain strength in the fields of nuclear waste disposal, urban sewage, etc., and subsequent state-owned enterprise reform and business expansion are strong. Give it a “buy” rating. Risk warning; gross margin of environmental protection projects declined further; implementation of ultra-clean emissions fell short of expectations