Recently, Dongxu Blue Sky began entering the environmental PPP field through the acquisition of Starview Ecology. On the basis of the original real estate business, Dongxu Blue Sky's photovoltaic power plant construction and environmental PPP business have expanded rapidly, laying a good foundation for the company's performance growth in the past three years. Based on the total share capital of 1,748 million shares after completing this fixed increase, the 2017-2019 EPS was 0.22 yuan, 0.51 yuan, and 1.10 yuan respectively. First coverage, giving a “Prudent Recommendation - A” rating. The company's current main business The company's main business is investment, construction and operation of photovoltaic power plants, real estate development and sales, etc. Controlling shareholder of Dongxu Blue Sky: Dongxu Group is a private enterprise registered in Hebei Province. In 2008, Dongxu Group built the first self-developed LCD glass substrate production line in China, breaking the monopoly on LCD glass substrates by foreign companies, and later restructuring the established listed company Gem A, which became the current Dongxu Optoelectronics. After the restructuring was completed, it raised 5 billion dollars to invest in the construction of 10 sixth-generation TFT-LCD glass panel production lines. In recent years, the optoelectronic display industry has expanded upstream and downstream, including polarizers, color filters, sapphires, graphene, etc., and announced plans to acquire the assets of Shanghai Shenlong Bus this year. Dongxu Blue Sky: It is the second listed company under Dongxu Group. After years of exploration by Dongxu Group, a team was formed in photovoltaic module manufacturing, photovoltaic power plant development and construction, etc., to vigorously develop the photovoltaic power plant business in 2015, obtain a path of 1.15 GW, and on the other hand, acquire the listed company Baoan Real Estate. After the acquisition, a fixed increase of 9.5 billion yuan was used for the construction of photovoltaic power plants. Dongxu Blue Sky's real estate business: In the real estate business, the company originally focused on residential real estate, but under the new strategic layout, it acquired park development projects in Yongqing and Yi County from controlling shareholders. Yi County is about 30 kilometers from Xiong'an, and Yongqing is also near Xiong'an. It has great potential for development. In the future, these parks will provide green energy, green buildings, and a green environment. Dongxu Blue Sky's photovoltaic business: The company's new energy business is developing rapidly. In 2016, construction of 800MW photovoltaic power plants began, mainly ground power plants. The scale of distributed monomers is small. The company has stepped up distributed project development efforts, and it will also be a growth point in the future. The PV grid connection is progressing smoothly. The company aims to achieve 300-400 MW of grid-connected work by June 30, 2017, and plans to achieve 3-4 GW of grid-connected holdings in the next 3 years. In the past two years, the photovoltaic industry has faced severe market changes, such as lagging subsidies and lower electricity prices, etc., but on the other hand, upstream costs have also declined, so yield has remained stable. Currently, competition for project development in the photovoltaic industry is fierce, but the company has been optimistic about this industry for a long time, so it has chosen to invest in the construction of photovoltaic power plants on a long-term basis. In addition, it will also invest in projects such as wind energy, gas power generation, multi-energy complementarity, microgrids, and energy storage, etc., and plans to expand the energy industry chain both horizontally and vertically. Dongxu Blue Sky's environmental protection business: Based on research, it is known that Dongxu Blue Sky's recent acquisition of an environmental company is not a temporary decision. The company's recent entry into the new energy business is based on the goal of “making the sky bluer” and developing environmentally friendly industries. The company believes that the environmental protection industry is also very much in line with the company's development goals. Furthermore, after years of extensive economic development, China's environmental protection management is facing a market explosion period. Sub-industries, including village water treatment, soil restoration, solid waste, and ecological treatment, all have a lot of market space, and companies are also optimistic about this kind of space. According to the company's strategic goal of “developing an environmentally friendly industry” and the premise of being optimistic about the environmental protection industry market as a whole, the company actively sought partners in the environmental protection industry and eventually acquired Starview Ecology. Dongxu Blue Sky: Real Estate+Clean Energy+Environmental Protection - The three sector joint companies believe that the environmental protection business and Dongxu Blue Sky's existing industry can achieve strategic collaboration. First of all, one of Dongxu Blue Sky's main businesses is green energy. It can be combined with the original “green real estate” to form green energy housing, and at the same time, when combined with environmental protection, it forms a new green ecosystem integrating “green energy+green habitating+green environment”, and can drive and complement each other. Profit forecast and investment recommendations 1. Based on the research situation, let's assume that EPC for real estate and photovoltaic power plants is expected to grow by 10% per year from 2016 levels in accordance with steady development. 2. New energy operation business: