Incident: Recently, the company's major asset restructuring was approved by the Securities Regulatory Commission. 99.6% of Huisheng Energy's shares have completed transfer and related commercial registration, making it a subsidiary of Chengzhi Co., Ltd. The restructuring plan is for the company to privately issue shares to 10 specific investors, including Chengzhi Kerong, to raise no more than 12.486 billion yuan to invest in the purchase of 99.6% of Wison Energy's shares and to build the 600,000 tons/year MTO project of Huisheng New Materials, a wholly-owned subsidiary of Huisheng Energy. Of these, the transaction price of Wison Energy was 9.752 billion yuan, the MTO project invested 2,734 billion yuan, and the issue price was 1,432 yuan/share. Main opinion: 1. The Wison energy model can be replicated, and the scale is effective. Huisheng Clean Energy Co., Ltd. was established in September 2003. Multiple production plants have been completed in three phases. Currently, a total of 7 coal water slurry gasifiers, 1 Wison-Shell mixed gasifier, 6 and 2 units have been built. It consumes 1.8 million tons of coal per year and purchases 400,000 tons of methanol. The total amount of synthetic gas is 275 kNm3/h, producing 600,000 tons of carbon monoxide, 70 kM3/h of hydrogen, 50 kNm3/h of synthetic gas, 250,000 tons of butyl alcohol, and 120,000 tons of ethylene. Wison Energy is committed to becoming a leading domestic industrial gas supplier, and pioneered the MTO industry chain to develop and expand the scale of the enterprise. The company specializes in the production and operation of various gases, co-production of methanol, and extends downstream to products such as olefins and butyl alcohol. It has a cost advantage when international oil prices are high. Compared with peers, the company's product line configuration is reasonable, the comprehensive utilization rate is high, and the product cost advantage is obvious. The company is located in Nanjing Chemical Park, where customers and suppliers are concentrated. The characteristics of the industrial cluster bring great convenience to the company's product sales and raw material supply. At the same time, the chemical park is located along the Yangtze River, rich in water resources and convenient transportation conditions, which greatly reduces logistics costs. The company's three-phase installations were completed and put into operation in 2007, 2009 and 2013, respectively. They have developed along with the development of industrial parks. They have been in the industry for many years and have rich experience. Chengzhi Co., Ltd. signed an investment framework agreement for industrial gas coal-to-hydrogen production at the Xizhongdao Petrochemical Industrial Park in Dalian. With the company's ability to control the industry, it is expected to create another Huisheng Energy. 2. Tsinghua provides technical support to help Wison develop the second-generation coal gasifier developed by Tsinghua University using water-cooled wall technology, expanding the scope of application of coal types, collecting the advantages of coal slurry and pulverized coal, taking coal gasification technology to the next level and having a high investment cost ratio. Tsinghua University is an authoritative domestic research institution in this field. Meanwhile, Wison Energy specializes in the industrial gas business and has rich industrial experience. After entering the Tsinghua system, Wison Energy will obtain scientific research and technical resources on coal gasification technology, which is expected to further improve the utilization rate of gas in the future. 3. As a platform for Tsinghua New Energy, future leapfrog development Chengzhi Co., Ltd. was positioned by Tsinghua Holdings as Tsinghua's new energy industrialization platform, and the acquisition of Huisheng Energy to engage in the coal-based industrial gas business completed the first step. Tsinghua Holdings has established 6 business segments, of which the new energy sector occupies a seat. In the future, it is expected that Tsinghua-related industrial enterprises will be optimized, restructured and acquired. New energy is the dominant discipline of Tsinghua University, and assets in the fields of related chemicals, nuclear energy, materials, thermal energy, etc. are all in the new energy sector. In the future, Chengzhi Co., Ltd. will use its own listed company platform to restructure Tsinghua Holdings' internal and external energy advantage enterprises through effective capital operation optimization to expand and strengthen the new energy industry, providing strong platform support for the development of the new energy industry into a pillar industry of Chengzhi Co., Ltd. and Tsinghua Holdings. Conclusion: The company completed the transfer of 99.6% of Wison Energy's shares. The synergy between the two will further enhance Wison's profitability in the future. At the same time, the Huisheng model is easy to replicate, and expectations for future Tsinghua asset re-injection are strong. We expect the company's net profit for 16-18 to be 65 million yuan, 694 million yuan, and 771 million yuan, EPS 0.05 yuan, 0.55 yuan and 0.61 yuan, respectively. The corresponding PE is 310X, 29X and 26X. First Follow gave it a “Highly Recommended” rating. Risk warning: Wison Energy's business conditions have deteriorated; fund-raising projects have fallen short of expectations.