Conclusions and suggestions: The company recently announced that it will acquire 100% of the shares of DHT in the US with 7.36 million US dollars. DHT has deep expertise in seawater desalination. This acquisition will fully accept DHT's advanced treatment technology and international markets. The company will maximize synergy, enhance the company's technical standards, and improve the international layout through a series of integrations. The company is expected to achieve net profit of 2.39 million yuan, 342 million yuan, YOY +69.31%, and 43.51%, and EPS of 0.53 and 0.77 yuan respectively. The current stock prices correspond to 17-18 dynamic PE29X and 20X respectively. The company's business expansion is sustainable, future rapid growth is highly certain, and “buy” suggestions are given, and the target price is 20.0 yuan (2018 dynamic PE26X). Acquisition of DHT Corporation of the United States: DHT Corporation is an international company specialized in providing zero-emission engineering design, technical services, and membrane technology, equipment, and equipment assembly and automation solutions for seawater desalination, municipal wastewater treatment, water plants, and oil fields. It has won many international awards, can be customized to meet the diverse needs of customers, has a global business network, and has 200 projects in 25 countries, covering the municipal and industrial sectors. After the acquisition is completed, Baan Water will own all of DHT's intellectual property rights. It can continue to use the DHT brand during the transition period, and will only be able to use the new trademark thereafter. In recent years, Baan Water has continued to carry out overseas mergers and acquisitions of companies with advanced technical standards. Through collaboration and integration, the company's competitive strength in seawater desalination and water treatment has been greatly enhanced. On the one hand, domestic orders have increased significantly. By the end of the first quarter, the company's on-hand EPC orders exceeded 900 million yuan, and BOT orders exceeded 2 billion yuan, totaling nearly 3 billion yuan of uncompleted orders, three times the revenue in 2016; on the other hand, the company has begun the internationalization journey of Baan Water through the overseas market channels covered by the acquisition. The seawater desalination business has performed excellently: the projects currently in progress include 100,000 tons/day in Cangzhou, 100,000 tons/day in Yingkou, and the Qingdao Blue Valley Seawater Desalination Industrial Park and equipment manufacturing base project framework agreements. Of these, the Cangzhou project completed an investment of 209 million yuan during the reporting period, and the remaining 569 million yuan will be completed this year and next two years. The Yingkou project is currently in the design stage. While actively developing the domestic market, the company is also speeding up the pace of overseas market expansion. Currently, it is participating in the bid for the fourth seawater desalination plant in Singapore. In the future, some countries such as Africa, Ethiopia, and Kuwait will sign some contracts one after another to undertake the execution of some Swiss water projects. Launch of the first phase of the employee stock ownership plan: The company announced a few days ago that the first phase of the employee stock ownership plan has already started. Recently, 2.39 million shares have been purchased at an average transaction price of 15.49 yuan/share, at a cost of 37.09 million yuan. The purchase limit for the entire shareholding plan is 300 million yuan, and it is expected that holdings will continue to increase in the later stages. The industry in which the company is located will have high growth in the next 1-2 years: the company's business focuses on seawater desalination and sponge cities. By the end of 2015, China's seawater desalination scale reached 1.03 million tons/day, only 1.2% of the world's 85.24 million tons/day. Currently, 2/3 of China's seawater desalination is used for industry, concentrated in coastal provinces where water prices are high. It is expected that the 13th Five-Year Plan will reach a critical point of explosion. The first two batches of pilot cities for sponge cities are progressing smoothly, and the third batch of cities is about to be launched. According to the Ministry of Housing and Construction, by 2020, more than 20% of the built-up area of the city will meet the target requirements; by 2030, more than 80% of the built-up area of the city will meet the target requirements, and the overall market size will exceed trillion dollars. With leading technology and project experience, the company is expected to fully enjoy the benefits of the industry explosion and achieve rapid development. Profit forecast: The company is expected to achieve net profit of 239 million yuan, 342 million yuan, YOY +69.31%, and 43.51%, and EPS of 0.53 and 0.77 yuan respectively. The current stock prices correspond to 17-18 dynamic PE29X and 20X, the company's business expansion is sustainable, and future rapid growth is highly certain, giving “buy” suggestions, and the target price is 20.0 yuan (2018 dynamic PE26X).