Incident: The company was the winning bidder for the EPC project for the Linhe District wetland restoration and protection project in Bayannur City, with a bid amount of about 989 million yuan. The company announced on January 6, 2017, that the company has completed the registration of industrial and commercial changes such as company name, registered address, and business scope. Comment: Change the name, add construction and ecological restoration business, and enter the ecological restoration market: The company name was changed from “Jiangsu Huawang Horticulture Co., Ltd.” to “Huawang Ecological Engineering Co., Ltd.”, and added “construction engineering, earthwork, environmental protection, hydropower installation construction, ecological wetland development and restoration, soil restoration, water environment and ecological management, housing leasing, and site leasing” to the scope of business. Furthermore, in response to the new business, the company recently signed an EPC project for an underground pipe gallery and road construction project in Donga, Shandong, and a wetland restoration and protection project in Bayannur, with a total amount of 1,126 billion yuan. The company's industrial layout is relatively balanced. In 2015, construction business revenue from municipal gardens and tourist landscapes, real estate landscapes, and road greening was 203 million yuan, 47 million yuan and 276 million yuan respectively, accounting for 37.86%, 8.76% and 51.41% of the company's main business revenue, respectively. Expanding the scope of business this time will enhance the company's ability to undertake projects and its ability to withstand risks. The ecological restoration industry ushered in favorable policies during the “13th Five-Year Plan” period, and all parts of the country will increase investment in environmental management and ecological restoration. The company will enter the ecological restoration market in due course and is expected to reap new performance growth points. The landscaping qualifications are complete, the construction management experience is rich, and the equity structure is stable. The company has a first-class enterprise qualification for urban landscaping, a second-level qualification for general contracting of municipal public works construction, a second-level qualification for ancient landscape construction engineering, and a special grade B qualification for landscape engineering design, and can undertake landscaping projects of various scales and types. The company's main business is landscaping, integrating design and construction. Since its establishment in 2003, the company has been mainly engaged in landscaping engineering design and construction business in the fields of municipal landscape, tourist landscape, road greening, and real estate landscape, while also engaged in a small amount of flower seedlings planting business. In 2013, 2014 and 2015, the company achieved operating income of 573 million yuan, 510 million yuan and 539 million yuan, and net profit of 57.083 million yuan, 55.6265 million yuan and 67.8061 million yuan respectively. The company's main business maintained stable operation. Kao Group holds 556.052 million shares of the Company, accounting for 41.71% of the total share capital. It is the controlling shareholder of the Company and is able to effectively manage the Company. Regional garden leader, accelerated expansion of epitaxial expansion. The company is a leading garden enterprise in southern Jiangsu, and plans to make Nanjing the second center. After going public, the company is also leveraging its ability to raise capital to expand business nationwide. The company went public and raised capital to invest in the establishment of local branches and supporting design institutes. Currently, Tianjin, Chengdu, and Sanya landscape engineering branches have completed registration. Relying on regional branches, the company will actively expand cross-regional business and achieve a strategic layout of nationalized development and multi-regional operations. Orders are sufficient, and development expectations are good. Since this year, the company has signed cooperation framework agreements with the Yinchuan Municipal People's Government and the People's Government of Bama Yao Autonomous County in Hechi City, Guangxi, and the investment and construction contract for the Baishuilong International Tourist Resort project in Pingba District of Anshun City. In addition to the Shandong Donga underground pipe gallery and road construction project and the Bayannur wetland restoration and protection project EPC project, the total amount of these projects is 2,926 billion yuan, reaching 543% of the company's revenue in 2015, providing a solid guarantee for the company's future performance. The garden industry has a large capacity, and the future prospects are promising. During the “13th Five-Year Plan” period, the government and society paid more and more attention to the protection and construction of the ecological environment, and investment increased. The market capacity of the garden engineering industry in 2017 is expected to be around 300 billion yuan. The concentration of the garden industry is low, and small companies can also obtain sufficient project orders. The scale of working capital is a major development bottleneck. It has been less than a year since the company was first listed. Currently, the scale is still small. It is supported by the ability to raise capital in the future, and there is plenty of room for development. The company's EPS for the years 16, 17, and 18 is expected to be 0.64, 1.23, and 1.91, and the corresponding PE is 69, 36, and 23X. A “buy” rating is recommended.