Incident: The company and Jiangsu Jinzhi Technology Co., Ltd. signed the “Joint Venture Agreement on the Establishment of Nanjing New Energy Smart City Development Co., Ltd.” Key investment points: Strong and strong join forces to expand new energy and smart city related businesses. The two joint ventures will invest 50 million yuan to establish Nanjing New Energy Smart City Development Co., Ltd., of which Nanjing Zhongbei accounts for 51%, and Jinzhi Technology accounts for 49%. The business scope of the joint venture includes 4 categories: charging pile (station) operation, contract energy management business based on photovoltaic power generation, smart parking service business, and distributed energy projects. This cooperation is conducive to leveraging the advantages of public resources in Nanjing and the technical advantages of Jinzhi Technology. On the one hand, it satisfies the internal needs of operating its own charging stations, and at the same time opens up new profit growth points. The resource advantage is outstanding, and B2B charging operations have great potential. The company operates 2,363 taxis (including 300 electric taxis), and the Nanjing Public Transport Corporation, which is the controlling shareholder of the company, owns 5,643 buses (including about 2,275 electric buses). In the future, with the continuous development of the new energy industry in Nanjing, the share of electric vehicles will continue to increase. The company is expected to give full play to its resource advantages and gradually build a regional charging station operation platform and a charging station operation service system open to electric buses, taxis, etc., and social new energy vehicles. Compared with the 2C business, 2B charging operations can effectively guarantee the number of hours of charging utilization and form stable profits and cash flow. Gas+passenger transportation to create a utility platform in Nanjing. In terms of gas business, the company completed a major asset restructuring in March 2015 and merged 51% of Hong Kong Huagas's shares and 14% of China Resources Gas's shares. In the first half of 2016, Ganghua Gas achieved revenue of 1.05 billion yuan and net profit of 121 million yuan, which became the company's main source of profit. In the future, the company will dig deeper into the market potential of commercial users and vigorously explore business development opportunities such as CNG fueling, LNG fueling, LNG point supply, and distributed energy. In terms of passenger transport business, the company mainly operates taxis, buses are outsourced to the Group, and has the qualification of a second-tier national road passenger transport enterprise. The dual main business of gas+passenger transportation has laid a solid foundation for the company's performance, and the company has become a utility platform in Nanjing. For the first time coverage, a “recommended” rating was given. We expect the company to achieve revenue of 39.22/41.73/4.514 billion yuan and net profit of 2.63/3.04/339 million yuan from 2016 to 2018. The corresponding EPS is 0.46/0.53/0.59 yuan, corresponding to the current stock price PE of 22, 19, and 17 times, respectively. Considering the stable development of the company's main business and the active expansion of B2B charging pile operations, we are optimistic about the company's medium- to long-term development prospects and give it a “recommended” rating. Risk warning 1. Charging operation expansion falls short of expectations; 2. Natural gas business expansion falls short of expectations; 3. Asset integration risk;