Incident review PPP expands to another city in other provinces, and continued replication across regions can be expected. This year, the company has successively won orders for various PPP projects such as Dongying in Shandong (106 million yuan), Changsha in Hunan (200 million yuan), and Ziyun County in Guizhou (190 million yuan). This time, it has reached a PPP project cooperation agreement with the Liupanshui Liuzhi Special Administrative Region Government with a total investment of 1 billion yuan, fully verifying the replicability of the company's PPP across regions. It is expected that this project contract will have a strong demonstration effect and help the company set project benchmarks within the region. The company's continuous expansion of markets in other provinces and the accumulation of government resources will continue to inject momentum into the improvement of the company's performance. The Guizhou market space is still large, and the project encourages the company to deepen its cultivation in the regional market. The GDP growth rate of Guizhou Province in the first three quarters of 2016 ranked second in the country, with an increase of 10.50% over the same period last year. The province's investment in environmental management has also gradually increased. Among them, the province's water conservancy, environment and public facilities management industries invested 143.352 billion yuan, an increase of 64.1% over the same period last year. This project contract will greatly benefit the company's penetration into the regional market. Based on membrane technology and PPP, “technology+engineering two-wheel drive” is realized. In the past, the company used membrane products as the core drive, and investment and operation integration became a trend under the PPP model. The company followed the major trend and began to promote “product+engineering” two-wheel drive. The future is worth looking forward to. Profit forecast and investment advice: Considering fixed increases and dilution (2017 consolidation and dilution), we expect the company's EPS from 2016 to 2018 to be 0.18, 0.62, and 0.81 yuan respectively, and the corresponding PE is 100x, 29x, and 22x respectively, maintaining the “buy” rating! Risk warning: Systemic risk, acquisition risk, project progress falling short of expectations!