The incident described the company's announcement that its subsidiary Hyundai Environmental invested 15.3 million yuan to participate in Beijing Zhongke Clean Energy Environmental Engineering Technology Co., Ltd., accounting for 51% of its total shares. Beijing Zhongke Clean Energy Environmental Engineering Technology Co., Ltd. is a specialized company focusing on environmental protection project research and development, engineering construction, project investment and financing, and project operation. The main management and technical personnel have more than 10 years of rich experience in the urban solid waste treatment industry, especially in the field of waste incineration power generation, with strong R&D capabilities and rich engineering practice experience. The business mainly involves food waste recycling and harmless treatment projects, urban domestic waste incineration power generation projects, municipal sludge treatment projects, high-concentration organic wastewater treatment projects, investment, construction and operation of urban vein industrial parks, and has mastered more than 10 patented technologies in the above fields. Incident review Holding Zhongke Clean Energy helped with capital operation to achieve rapid market entry. Zhongke Clean Energy is a company founded by the original team of Zhongke GM. It has been working in the solid waste field for 20 years and has rich brand, performance and project experience. Due to the relatively short development time of the modern environment, there are certain shortcomings in terms of brand and engineering performance. By holding Zhongke Clean Energy, the company will effectively make up for the shortcomings and accelerate its entry into the solid waste field. The layout of the large solid waste sector has been further strengthened, and the comprehensive environmental protection layout is being improved. The modern environment started with household waste disposal, but it is positioned as a comprehensive solid waste disposal enterprise. From domestic waste landfill, incineration, hazardous waste disposal, and soil remediation to holding Zhongke Clean Energy to absorb large-scale domestic waste incineration, kitchen, and sludge disposal performance and experience, the company has taken it to the next level in terms of industrial layout, industry influence, and engineering experience. The “resources” + “capital” model was once again verified, and the company accelerated along the right path. We have always been optimistic about the modern environment. The core logic lies in the company's clear strategic position for building an environmentally friendly platform company: integrating “resources” + “capital” with “technology”, and holding Zhongke Clean Energy this time is a verification of the company's logic. The company has obvious resource endowments to develop environmental protection business, and the company's deep understanding of its own resource endowments and appropriate strategic alignment have enabled the company's environmental protection business to continue to grow at an accelerated pace, and the future is worth looking forward to. Maintain a “Recommended” rating. We expect the company's EPS from 2014 to 2016 to be 0.37 yuan, 0.53 yuan, and 0.67 yuan (completely diluted), corresponding to PE 17 times, 12 times, and 9 times, respectively. We are optimistic about the investment logic of the company's “inflection point of main business performance+PPP megatrend beneficiaries+environmental protection platform”, and maintain a “recommended” rating.