Incidents: The company announced the first quarter report of 2015 on April 25. In the first quarter, the company achieved operating income of 229 million yuan, an increase of 257.20% over the previous year; realized operating profit of 783.44,800 yuan, an increase of 3430.77%; net profit attributable to shareholders of listed companies was 67.165 million yuan, an increase of 1648.38% over the previous year; and basic earnings per share of 0.24 yuan. The company also announced its 2015 semi-annual results. It is estimated that the cumulative net profit attributable to shareholders of listed companies in the first half of 2015 will be about 177-187 million yuan, up 1058-1123% from the same period last year. Comment: The sharp increase in performance is mainly due to the huge contribution of the complete mechanical equipment business. In the first quarter of 2015, the company continued to make full use of its own equipment integration advantages and actively promoted the development and sales of export business, which contributed to a significant increase in the company's revenue and profit. During the reporting period, the company's complete mechanical equipment business grew steadily, completing revenue of 216 million yuan, accounting for 94.22% of the company's revenue in the first quarter. The company signed a number of major orders for the complete mechanical equipment business in 2014, and completed some orders in the first quarter, which greatly increased the revenue of the complete mechanical equipment business: (1) In September 2014, the company signed a “Special Smelting Equipment Complete Contract” with PT. Artabumi Sentra Industrial, with a contract value of 173 million yuan. The project contract completed the final delivery acceptance of the first batch in December 2014, and the remaining batches completed final delivery acceptance in March 2015. By the end of the reporting period, the contract had been executed. (2) In October 2014, the company signed the “RKEF Special Smeltindo Selaras” with PT. Metal Smeltindo Selaras, with a contract value of 79.85 million US dollars. The project contract completed the final delivery acceptance of the first batch in December 2014, and the remaining batches are expected to complete final delivery acceptance in batches in 2015. (3) In November 2014, the company signed a “Complete Procurement Contract for Special Smelting Equipment and Waste Heat Power Plant Equipment for Phase II of the Blast Furnace Project” with a contract amount of 65.8 million US dollars. The project contract completed the final delivery acceptance of the first batch in December 2014, the final delivery acceptance of the second batch was completed in March 2015, and the remaining batches are expected to complete final delivery acceptance in batches in 2015. Results for the first half of the year are expected to increase significantly year over year. The company expects that its performance in the first half of the year will continue to increase significantly for the following reasons: (1) The large contracts newly signed in 2014 will continue to contribute profits to the enterprise. Currently, the company has executed orders of about 1 billion yuan. According to the production plan, the half-year output value has increased significantly compared to the same period last year, which will increase net profit and loss belonging to shareholders of listed companies significantly over the same period last year; (2) the company's non-recurring profit and loss amount is expected to be 1.03 million yuan during the reporting period, compared to 900,000 yuan in the same period last year. The fund-raising project has basically been completed, and we are waiting for Indonesia's nickel-iron industrial park to gain momentum. The company's “High Voltage Reactive Power Compensation Device Product Upgrade and Industrialization Project” and “R&D Center Construction Project” have all been completed. As a result of the company's rational and effective use of funds, there is a balance in the capital raised, and in addition, the final payment for some equipment purchases has not yet been paid, so the capital investment progress has not reached 100%. The “marketing network and customer service infrastructure construction project” was affected by the growth rate of industry demand and the adjustment of the company's development strategy and business model. The company management adopted a cautious attitude and sought to maximize the efficiency of raising capital, slowed down the construction of marketing centers in some regions, and reconsidered the construction of marketing networks and staffing for international businesses. The estimated construction period of the “Indonesia Sulawesi Nickel Iron Industrial Park Project Phase I Project” is two years. The design and production capacity will be reached in the third year, and 2015 is the second year of the construction period of the project. In 2012, the company decided to invest all of the remaining overfunded capital of 1203.719 million yuan into the 3×65 MW project for the expansion of the ASAM-ASAM power plant in South Kalimantan, Indonesia. Due to changes in the quadripartite agreement between the shareholders who initiated the project, it has not been possible to obtain approval from the Indonesian National Power Company and has been slow to sign the project contract. The company's investment schedule for the project is lagging behind. In order to better protect the interests of the company and investors, it was decided to change the overfunded investment project. The company has made significant progress in investing in Indonesia's Sulawesi Island nickel-iron industrial park project. The site selection for the industrial park has been determined, and the project was officially launched in February 2014. In order to rationally use the raised capital and improve the efficiency of the company's use of capital, the company has invested all of the above overfunded balance of 127.1003 million yuan into the construction of the first phase of the Sulawesi Nickel Iron Industrial Park project in Indonesia. Maintain a “buy” investment rating. Relying on Indonesia's Sulawesi Nickel-Iron Industrial Park project, the company integrates Indonesian mining and power plant resources, and uses superior local resources - coal and nickel ore to build a complete nickel industry chain; at the same time, the company will continue to explore overseas sales markets for complete machinery and equipment business, starting from the Indonesian Industrial Park project. It is expected that sales orders and sales revenue will continue to increase in 2015, and the company's performance will continue to grow rapidly. According to the company's performance and project progress, we raised our performance. The company's 2015-2016 EPS was 1.31 yuan and 2.27 yuan respectively. Combined with the average valuation level of the nickel sector, we gave the company a target price of 78.88 yuan, corresponding to 60 times PE in 2015, and maintained a “buy” rating. Risk warning. Policy risk; project completion risk; exchange rate fluctuation risk; business integration risk.