Company Profile: Shenwu Energy Saving is a listed company under the Shenwu Group engaged in next-generation steel, non-ferrous and solid waste treatment. Adhering to the technological innovation strategy, the company uses three unique technologies: the world's leading direct reduction clean smelting technology for Shenwu regenerative rotary bottom furnaces, and Shenwu regenerative gas melting furnace technology, to solve the problems of high energy consumption, high cost, and high pollution in the steel and non-ferrous industries from the source, in line with the national strategy of supply-side reforms, which are of great significance in reducing air pollutant emissions and carbon dioxide emissions. Supply-side reforms and environmental pressure have released the metallurgical industry's demand for more than 375 billion energy saving transformation. Due to overcapacity in the steel and non-ferrous industries and environmental protection inspections, environmental protection pressure has surged, and there is an urgent need to upgrade the overall industry; in addition, the energy saving and environmental protection industry is supported by national policies, and the business areas involved in Shenwu Energy Saving will usher in huge market space. Based on the current industry's actual treatment of bulk solid waste, energy saving transformation, and the “13th Five-Year Plan” plans for various industry segments, we estimate the market space to be 375 billion dollars. The Shenwu Energy Saving Jinchuan Project was put into operation, and the barriers to global technological leadership are high. The Shenwu Energy Saving Jinchuan Project was put into operation, leading the world in technology and high barriers. The world's first comprehensive utilization project for copper tailings was put into operation, marking the actual implementation of Shenwu's disruptive technology for energy saving. The implementation results of the project were good, and the return on investment was high. The first phase of the project can achieve an iron recovery rate of 84.76%, a zinc recovery rate of 90%, an annual net profit of 210 million yuan, and a total payback period of 4.1 years. The gross margin of engineering design is about 70%, and the gross margin of engineering contracting is about 35%. Disruptive technology guarantees energy saving and environmental protection and economic benefits of the project, and can occupy a high market share. Order stocks and industry space are guaranteed, and performance is expected to exceed expectations. The company currently announced that it has major sales contracts of about 7.796 billion yuan, with domestic sales of 5.57 billion yuan plus overseas sales of 318 million US dollars. The company uses the capital market to innovate models, with a total investment of 1.08 billion yuan in the Jinchuan project, 83.3% of the China Development Fund, 10.8% of the shares of Shenwu Group, and 5.8% of the shares in Jinchuan, Gansu. The company uses a general engineering contracting (EPC) profit model, and taking advantage of supply-side reforms, the pace of promotion of disruptive technology will be greatly accelerated. Based on our estimated industry space and order signing potential, the performance is expected to exceed market expectations. Profit forecast and investment rating: The company's 16-18 EPS is estimated to be 0.51, 1.08, and 1.70 yuan, respectively, and the corresponding PE is 57, 27, and 17 times. Considering supply-side reforms and environmental pressure, the steel and non-ferrous industry has broad scope for large-scale solid waste treatment, energy saving and environmental protection transformation. The company will continue to receive new orders in the future and have high growth potential. It will be given 33 times PE over 17 years, corresponding to a target price of 35.64 yuan, and given a “buy” rating for the first time. Risk warning: Project settlement risk; project construction progress risk.