Performance disclosure: In 2016, the company achieved operating income of 1,050 million yuan, a year-on-year decrease of 22.74%; net profit attributable to shareholders of listed companies was 131 million yuan, a year-on-year decrease of 18.87%. In the first quarter of 2017, the company achieved operating income of 459 million yuan, an increase of 119.64% over the previous year; net profit attributable to shareholders of listed companies was 51 million yuan, an increase of 84.49% over the previous year. The company's performance forecast for January to June 2017 is a year-on-year increase of 20% to 60%, with a net profit of 89 to 119 million yuan. EPC revenue recognition affects current revenue: The company's revenue declined in 2016. The impact reasons include that some EPC revenue was delayed until 2017, which also led to a sharp increase in the company's revenue in the first quarter of 2017. International oil prices continued to be low in 2016, and some major overseas projects tracked by the company progressed slowly. The annual contract amount was 679 million yuan, down 55.64% from 2015; the contract amount in hand at the end of the year was 1,044 million yuan, down 6.78% from 2015. Since the 2016 production limit agreement was reached, oil prices in the international market have continued to pick up, and investment confidence has also increased. The company's current participation in bidding and workload has also increased. It is expected that revenue confirmation from EPC projects in 2017 will pick up. The company's business goals in 2017 are to achieve revenue of 2 billion yuan and net profit of 350 million yuan. Acquiring Anton's business in Iraq increases performance with high-quality assets: In 2016, the company acquired 40% of Anton DMCC's Iraq oilfield business. In 2016, DMCC achieved revenue of 900 million yuan and net profit of 324 million yuan, with year-on-year increases of 59.77% and 48.29% respectively; in 2016, it brought the company 63.5 million investment income. According to DMCC's performance commitments, net profit from 2017 to 2018 is not less than 338 million yuan and 416 million yuan, respectively, and is expected to contribute more than 135 million and 166 million yuan of investment income to the company, respectively. The environmental protection business has achieved breakthrough development and is expected to form a new growth point: in 2016, the company achieved breakthroughs in the fields of petroleum and petrochemical and municipal environmental protection, and signed new contract orders of nearly 80 million yuan, of which the fledgling municipal environmental protection business received 18 million yuan of orders. The environmental protection business has achieved breakthrough development. Profit forecast and investment rating: From 2017 to 2019, the company is expected to achieve revenue of 1,630/1857/2121 million yuan, net profit of 318/397/469 million yuan, EPS of 0.30/0.37/0.44 yuan, and corresponding PE of 21X/17X/14X respectively. Maintain the company's “buy” investment rating. Risk warning: execution risk of EPC projects; risk of fluctuations in international oil prices; uncertainty in capital expenditure of oil companies; risk of declining profitability due to increased competition in the industry.