Event: The company released its 2016 report and quarterly report. In 2016, the company achieved operating income of 497 million, an increase of 26.65% over the previous year, and net profit of 85.31 million yuan, an increase of 28.44% over the previous year. In the first quarter of 2017, the company achieved operating income of 125 million yuan, a year-on-year decrease of 4.87%, and net profit of 15.94 million yuan, a year-on-year decrease of 6.33%. Comment: Overseas business is growing rapidly. The increase in the company's performance in 2016 was mainly due to the increase in overseas sales revenue and the Dutch Novecare consolidated statement. Overseas revenue for the whole year increased 264% year on year, and the share of the company's total operating income increased to 40.9% (14.24% in 2015). Affected by poor downstream demand, the company's domestic business revenue fell 12.73% year on year. Overseas business is once again on the next level. We expect Synergy to announce at the same time that it plans to acquire 100% of the shares of French PST with no more than 120 million yuan. PST shareholders predict that PST's net profit for 2017-2019 will not be lower than RMB 7.67 million, 8.29 million, and 9.77 million, respectively. PST is a French company engaged in the development and sale of chemical fertilizer additives and porous ammonium nitrate additives. The company's fertilizer additives business has a leading market position in the European market, especially the southern European market. At the same time, the founder of the company is the inventor of porous ammonium nitrate additives and has a prominent market leadership position in the field of porous ammonium nitrate additives. Previously, the company had obtained 70% of the shares of Novecare in the Netherlands through two cash mergers and acquisitions, and will soon complete the third payment in 2017 to obtain 85% of its shares. The acquisition of PST will further expand the share of the company's anti-caking agent products in the European market, increase the company's global product portfolio in the field of ammonium nitrate additives, expand the company's potential market capacity, and enhance the synergy between sales and market channel integration. Second, after the merger and acquisition, the company plans to integrate the production of the two European subsidiaries to improve efficiency. Revisions to profit forecasts, investment ratings, and valuations: The company's 2017-2019 EPS is expected to be 0.79 yuan, 0.97, and 1.20 yuan respectively. The company's internal growth and extension both have great potential for development. The current market capitalization is less than 2.8 billion yuan, and the target price is 25.50 yuan, maintaining the “increase in holdings” rating. Risk warning: risk of cyclical fluctuations in the fertilizer industry; risk of fluctuations in raw material prices