Incident: The company and Jiangsu Jinzhi Technology jointly established Nanjing New Energy Smart City Development Co., Ltd., with a registered capital of 50 million, and the company holds 51% of the shares. The joint venture will be engaged in the construction and operation of electric vehicle charging stations, charging stations, and charging towers related to new energy and smart cities, smart parking services, contract energy management based on photovoltaic power generation, and distributed energy. Key investment points: Join hands with Jinzhi Technology to lay out the charging pile business. Jinzhi Technology has a rich accumulation of investment in power automation and new energy projects, providing software and hardware support for the company's operating platform. Jiangbei Zhongbei, a subsidiary of the company, operates 2,363 vehicles (including 300 new energy vehicles in Hexi), accounting for about 20%; the actual controller of the company, the Urban Construction Group, owns the Nanjing Public Transport Group, which operates the vast majority of bus assets in Nanjing. Jiangnan Leasing, a brother unit within the group, owns more than 1,900 taxis. Together, the two account for about 40% of the taxi market in Nanjing. The group is undoubtedly the leader in new energy electric vehicles in Nanjing, and the number of charging stations in stock exceeds 3,000. The company has a remarkable advantage in relying on the group's resources. The gas business is developing steadily, providing the company with stable cash flow. In the first half of 2016, the company's gas revenue was 940 million yuan, a year-on-year decrease of 6.53%, mainly due to the reduction in gas sales prices for non-residents of Nanjing Port and China. In 2015, Nanjing Ganghua built a new pipeline network of 285 kilometers, reaching a total of 3,390 kilometers. In 2015, Nanjing Ganghua added about 75,000 new customers, and the total number of gas customers at the end of the period reached 1.27 million, with annual sales of 610 million cubic meters of natural gas. In 2015, external ventilation of the Kirin Science Park distributed energy project was realized, further expanding the depth of Nanjing Ganghua gas business. Resource integration is expected to accelerate, integrating public service resources in Nanjing. The company is controlled by Nanjing Public Utilities Group. The group owns various types of urban infrastructure and municipal public projects such as buses, gas, water, environmental management, etc., and has subsidiaries such as Nanjing Bus, Nanjing Gas Corporation, Nanjing Water Group, Nanjing Public Water Service Co., Ltd., and Nanjing Zhongbei. As the group's only listing platform, the company is expected to play a role in integrating public service resources in the future. Profit forecast and rating: Regardless of the majority shareholders' asset injection expectations, we maintain the company's profit forecast unchanged. The company's net profit attributable to the parent company in 2016-2018 is estimated to be 264 million yuan, 292 million yuan and 334 million yuan respectively. The corresponding EPS is 0.46 yuan/share, 0.51 yuan/share and 0.58 yuan/share, and corresponding PE is 22 times, 20 times and 17 times respectively. The company's valuation level is low within the industry, and future transportation business models are expected to be innovative, and the prosperity of the gas industry has improved. Maintain a “buy” rating.