Investment highlights: Baan Water announced the acquisition of 100% of DHT's shares for $7.36 million. The company transferred its holdings of Doosan Hydro Technology LLC from Doosan HeavyIndustries America Holdings Inc. (Doosan Heavy Industries America Holdings Inc.). (DHT) 100% equity. DHT's main business is seawater desalination, municipal sewage treatment, water plants, and oilfield zero-discharge projects. As of February 24, 2017, DHT had total assets of US$20 million and total liabilities of US$50.55 million (before the equity settlement of this transaction, DHT shareholder Doosan Heavy Industries America Holdings will be responsible for clearing up US$45 million of short-term loan liabilities), with adjusted net assets of US$14.45 million. The transaction was worth $7.36 million. DHT has advanced seawater desalination technology. 1) In 2005, Doosan Heavy Industries acquired the water division of American Engineering Services (established in 1985) and later established DHT. 2) Leading seawater desalination technology: DHT is a medium-sized company located in the United States. It has strong seawater desalination technology capabilities and has received various international awards and honors, such as the “Desalination Company of the Year” award from GWI (Excellent Desalination Company of the Year, 2008) and the “Water Reuse Facility of the Year” award from GWI. 3) Diverse treatment processes: DHT can customize different treatment processes through excellent pretreatment process design including air flotation, ultrafiltration, etc., as well as diverse post-treatment systems including mineral supplementation, chlorine disinfection, ozone and ultraviolet disinfection. 4) Rich engineering performance: DHT has more than 200 design projects in 25 countries, covering the municipal and industrial fields. 5) Jeddah Seawater Desalination Project: DHT has a successful track record in many fields, such as the Jeddah Seawater Desalination Project (12 x 4.6MGD). The Jeddah seawater desalination project is the largest RO seawater desalination project in Saudi Arabia. The project scale is 55.2 MGD (250,000 tons/day), and the investment amount is 480 billion won (equivalent to 2.95 billion yuan). The synergy effect is huge and helps the company improve the seawater desalination industry chain. 1) The company obtained seawater desalination technology reserves through the acquisition of KWI, LW and iTN. At present, the Cangzhou Sea Desalination Project has begun; an 830 million yuan strategic framework agreement of 100,000 tons/day for Xianren Island in Yingkou City has been signed; an investment letter of intent for the Blue Valley Seawater Desalination Industrial Park in Qingdao has been signed, with a total planned investment of 1 billion yuan. 2) DH has good markets not only in mainland America, but also in Southeast Asia, South America, the Middle East and Africa, and has strong market development capabilities. 3) This acquisition is another capital venture overseas following the company's acquisition of 21.6% of LW's shares, opening up a new situation for the company's overseas environmental water business development, and is in line with the company's long-term development strategy. Profit forecasting and valuation. The company is expected to achieve net profit of 231, 3.31, and 476 million yuan owned by the parent company in 2017-2019, corresponding EPS of 0.52, 0.74, and 1.07 yuan. Referring to comparable company valuations, the company was given 45 times PE in 2017, corresponding to a target price of 23.40 yuan, and a purchase rating. Risk warning. Outdated mergers and acquisitions integration risks, etc.