Investment advice: According to the “Equity Acquisition Agreement”, the net profit attributable to the owners of the parent company after deducting non-recurring profit and loss in the consolidated statements of the 2016, 2017, and 2018 companies of Honeycomb New Energy and Fosun International will not be less than 500 million yuan, 600 million yuan, and 700 million yuan respectively. This will bring relatively rapid profit growth to Huaxi Energy. The company's engineering contracting business is growing steadily, and the completion of major construction projects will also bring stable cash flow to the company in the future. We forecast the company's earnings per share from 2016 to 2018 to be $0.30, 0.53, and $0.62, respectively. First coverage, a “buy-B” recommendation was given. The target price for 6 months was 16 yuan, which is equivalent to a dynamic price-earnings ratio of 30 times that of 2017. Risk warning: The downstream application of graphene technology has not posed a risk of scale; the risk brought about by technological breakthroughs; the financial risk caused by the instability of enterprise integration; and the risk of increased market competition.