Key investment points Set up a joint venture with Jinzhi Technology to actively explore fields such as new energy and smart cities. The joint venture established Nanjing New Energy Smart City Development Co., Ltd. with a registered capital of 50 million yuan, of which the company invested 25.5 million yuan and held 51% of the shares; Jinzhi Technology invested 24.5 million yuan and held 49% of the shares. The joint venture will be mainly engaged in the construction and operation of electric vehicle charging stations, charging stations, and charging towers related to new energy and smart cities, smart parking services, contract energy management based on photovoltaic power generation, and distributed energy. Combine resources and technology, collaborate and complement each other. The partner company Jinzhi Technology has certain advantages in the field of technology and equipment. Combined with the company's resource background as a major public utility platform in Nanjing, the two sides are expected to collaborate well and complement each other. For example, in terms of charging stations, the company is a leader in the taxi sector in Nanjing. Currently, it has more than 2,300 operating vehicles, of which 300 are pure electric new energy taxis, with a market share of nearly 20% in the Nanjing market. Furthermore, the company won the bid for the online car-hailing target and will add 100 electric taxis. In terms of public transportation, Nanjing Urban Construction, the majority shareholder, owns the right to operate urban buses in Nanjing. Currently, there are about 9,000 buses in Nanjing, of which 2,000 are electric vehicles. Traditional businesses are growing steadily, and prospects for new businesses are promising. The company's gas business and real estate business have all benefited from the strong momentum of Nanjing Real Estate since this year. We judge that the company's traditional business will grow steadily, providing strong support for new business expansion. However, in the new business, relying on resources in the taxi and bus sector and drawing on the more mature charging business model, the charging pile business may contribute more quickly to performance. Photovoltaic power generation, smart parking, and distributed energy projects are emerging expansion fields, and the business prospects are worth looking forward to. A large platform for public utilities, clarifying the position of energy+passenger transport. With the company's successful transformation from a passenger transport company to pioneering a new main gas business in the past two years, and the company's name has been changed to Nanjing Public Service, the direction of positioning itself as a major public utility platform has become clear. However, after the establishment of this joint venture, the strategic position of energy+passenger transport has been further clarified. Based on our judgment on whether the charging pile business is progressing rapidly, it is estimated that the current gross profit of the new energy and bus stock charging market in Nanjing is about 100 to 150 million yuan. In the future, as the proportion of new energy vehicles increases, the related market size will gradually increase, and joint ventures with resources+technological advantages are expected to gradually become the dominant players in the relevant markets. Risk warning. 1. New business expansion fell short of expectations; 2. Macroeconomic slowdown. Earnings forecasts, valuations and investment ratings. The company's traditional business is mainly the gas business with steady growth, which plays a good supporting role in the expansion of new businesses. After the establishment of the joint venture, the position of energy+passenger transportation became more clear. In the future, charging stations, charging towers, smart parking, contract energy management based on photovoltaic power generation, and distributed energy will become potential profit growth points for the company, and the prospects are promising. Considering that the specific model of the company's new business is still unclear, the 2016/2017/2018 EPS forecast is 0.44/0.47/0.50 yuan for the time being. The corresponding PE is 23/21/20 times, maintaining the “buy” rating.