Incident: Shouchuang Environment issued an announcement on the evening of June 29, 2016. Beijing Capital Investment, a wholly-owned subsidiary of the company, was ranked as the first successful candidate with a comprehensive rating in the bidding for a food project in Jinzhong City, Shanxi Province, and is currently in the bid announcement period. The Shanxi Jinzhong Food and Kitchen Project is the fifth food anaerobic treatment project obtained by the pioneering environment in China. It is also a national pilot project for resource utilization and harmless treatment of food waste. The project uses the PPP model. The franchise period is 30 years, the total design processing scale is 100 tons/day, and the first phase processing scale is 60 tons/day. Comment: New orders have been added to the kitchen business, continuing to lead the domestic food market. After winning the bid, the total scale of anaerobic treatment for pioneering environmental food will reach 2,430 tons/day, continuing to lead the domestic market. We believe that during the “13th Five-Year Plan” period, the government will continue to vigorously promote investment and construction of food processing facilities, and the company is expected to receive more orders in the future. The time for overseas asset injection is approaching, and this year's performance will explode. Shouchuang Environment's acquisition of New Zealand's BCGNZ has been approved by the shareholders' meeting. After the acquisition is completed this year, it will contribute no less than HK$200 million in attributable net profit to the company, and performance is expected to explode. New projects are growing steadily, and the domestic market is expected to gain strength in the second half of the year. In the second half of the year, the company will continue to expand projects around the strategy of building a platform for the entire solid waste industry chain, and it is expected that new projects will continue to increase in the future. The Group's high-quality solid waste asset injection will also continue to increase the company's value investment suggestions: Based on the total share capital of 14.295 billion shares of the latest exam preparation after the asset injection is completed, Shouchuang Environment's 2016 EPS was about 15 times and PB was about 1.1 times, which is lower than the valuation center of the Hong Kong stock environmental protection 20 times EPS. Under the company's integrated solid waste strategy, the medium- to long-term prospects are improving. New projects will continue to be catalyzed in the future, and they may enjoy a certain valuation premium. Investors are advised to pay active attention. Risk warning: New projects fell short of expectations, and the RMB and New Zealand dollars depreciated against the Hong Kong dollar.