Company Profile The company is a leading enterprise in the ice industry in China. Since 2013, it has entered the “hydrogen fuel cell” field through mergers and acquisitions. Currently, the company's three main businesses are complete ice making systems, compressor systems, and central air conditioning systems. The cold chain and hydrogen energy are the company's future development direction. The company's 2016 performance report shows that it achieved operating income of 867 million yuan, an increase of 35.25% over the previous year, and realized net profit of 36 million yuan, an increase of 117.26% over the previous year. Successfully entering the hydrogen fuel cell field, Open Growth New Space Company took a stake in the US CN Company, introduced fuel cell turbine air compressor technology, and achieved diversified development of fuel cell air circulation system technology. It also uses the turbomachinery technology developed by CN to significantly improve the company's hydrogen liquefaction technology. The company established a wholly-owned subsidiary of Shanghai Xueren Hydrogen Energy Technology and established a strategic cooperative relationship with Xinyuan Power to achieve the company's industrial expansion in new energy fields such as hydrogen energy and fuel cells. The compressor business is booming, and the cold chain industry welcomes rapid growth. The company acquired 17.21% of OPCON's shares in 2014 and 100% of SRM and OES in 2015, has mastered the core technology of screw compressors, and owns two internationally renowned compressor brands, SRM and RefCom. Revenue from the compressor business increased 398.88% year over year in 2015. As the company's traditional industry, the cold chain industry benefits from the rapid development of cold chain logistics, and the company is expected to experience an explosion in performance. Acquire Jiayun Oil & Gas to promote technology applications In April 2016, the company acquired 100% of the shares in Jiayun Oil & Gas, organically combining compressor technology with natural gas extraction, accelerating the market development of the compressor business in the field of oil and gas applications. Furthermore, Jiayun Oil & Gas promised that net profit for 2016, 2017, and 2018 will not be less than 38.89 million, 44.72 million yuan, and 5142 million yuan respectively, with a compound growth rate of 15%, which is conducive to increasing the company's profits. Valuation and ratings We forecast the company's 2016-2018 EPS of 0.05 yuan, 0.12 yuan, and 0.18 yuan respectively. Considering the broad application prospects of hydrogen fuel cells as a technological revolution, we gave the company a target market value of 10 billion yuan, corresponding to a target price of 14.50 yuan, maintaining the “increase in holdings” rating. Risks suggest that the development of fuel cell vehicles falls short of expectations, and that the performance of the acquisition company falls short of promises.