Report summary: In the environmental protection sector, a comprehensive platform for “water+solid waste+engineering” is beginning to appear. While maintaining its leading position in regional water operations in the Pearl River Delta region, the company has initially built a comprehensive environmental protection platform of “water+solid waste+engineering” through a series of mergers and acquisitions in recent years. In the future, once PPP and cross-regional environmental protection projects are implemented, it will bring a new round of growth opportunities for the company. The passenger transport service and market management sector has stable growth and high profit quality. The company has the right to operate passenger routes from Zhongshan to Hong Kong. The customer base is stable, the business is high quality, and the gross margin has remained around 60%; the Dingzeng farmers' market renovation project is also progressing steadily. The next two businesses will continue to contribute stable profits to the company. Capital operations and the main business form a good synergy. The capital operation business has always provided a platform for investment and financing and extended mergers and acquisitions for the company's main water and environmental protection business, which has good synergy; at the same time, the company is also changing the current situation of excessive reliance on GF Securities's equity earnings by strengthening its main business. We believe there are several major points of interest in the company's future development, which are worth paying attention to: Highlight 1: The explosion of the PPP market has ushered in high growth opportunities. The company recently won the bid for its first PPP project, with a total investment of 263 million yuan. With its strong position in the Zhongshan region, the company is likely to receive continuous PPP orders for some time to come, and high performance growth can be expected; highlight 2: There is room for imagination to inject state-owned assets. As the only holding and listing platform under the State Assets Administration Commission, the company is an important channel for the securitization of state-owned assets in Zhongshan City. The assets owned by the controlling shareholder Zhonghui Group can form good collaboration with the company's business, providing huge room for imagination for the injection of state-owned assets; Highlight 3: With Fosun, extended mergers and acquisitions can be expected. As the second largest shareholder, Shanghai Fosun holds 12.35% of the company's shares and appoints managers with extensive investment experience as company executives. Outreach mergers and acquisitions using Fosun resources are worth looking forward to. Highlight 4: The equity incentive plan is being actively promoted. The application for the company's equity incentive plan has been approved by the relevant departments. Once implemented, it will bring positive significance to the company's development. Company profit forecasts and investment ratings. The company's operating income is estimated to be 1,455 billion yuan, 1,651 billion yuan, 1,816 billion yuan, and 1,816 billion yuan, respectively, and earnings per share of 0.63 yuan, 0.71 yuan, and 0.72 yuan. The current stock price corresponding to P/E is 17.19 times, 15.19 times, and 14.95 times, respectively. Give a “Recommended” rating.