1. Overview of the incident Recently, we investigated Hengtai Aipu (300157) and learned about the company's production and operation. 2. Analysis and judgment of the five major sectors, “soft and hard” implementation, to build China's Schlumberger company's traditional business capabilities are reflected in the following three aspects: first, soft (exploration and development of software technology products) and hard (oil and gas equipment/equipment, instruments/meters) technology development and product transformation capabilities; second, global sales and market share of soft and hard products; and third, the ability to use soft and hard products to provide service operations for global oil companies and oil-producing countries. On this basis, the company's business has developed into an international integrated oil service company with comprehensive development in five major sectors: G&G business sector, equipment manufacturing sector, engineering technology sector, oil service+Internet sector, and green oil service sector, and a comprehensive international oil service company dedicated to building China's Schlumberger. The number of new shares added to Xinjinhua and Sichuan Oil Design was increased. The number of new shares added to the natural gas industry chain company was listed on May 17. Among them, the total number of shares issued to counterparties that issued shares and paid cash to purchase assets was 50,726,140 shares (13.54 yuan/share) to purchase 95.07% of Xinjinhua's shares and 90.00% of Sichuan Oil Design's shares; the number of shares issued in ancillary financing was 64,343,163 shares (11.19 yuan/share), raising 720 million yuan to pay for the acquisition of Xinjinhua and Sichuan Oil Cash consideration of the design, transaction taxes and intermediary fees, and supplementary working capital of listed companies. Through the acquisition of Xinjinhua and Sichuan Oil Design, the company laid out the clean energy business and successfully entered the natural gas industry chain. Xinjinhua promised net profit of not less than 70.8 million yuan, 80 million yuan, and 88.5 million yuan for 2015-2017, respectively; Sichuan Oil Design promised that the net profit after deduction in 2015-2018 would not be less than 23.65 million yuan, 28.4 million yuan, 32.65 million yuan, and 37.55 million yuan, respectively. Companies that join hands with China and Overseas Energy to enter the field of petroleum-related products and chemical products trade have signed a strategic agreement with China and Overseas Energy. They intend to use the existing resources of both parties to build a comprehensive trade platform to carry out all-round cooperation in energy. The categories of cooperation include, but are not limited to, petroleum-related products and chemical products trade. On the basis of a framework agreement, they will jointly explore new models of commercial development, make full use of their own resources, develop together, and establish a strategic cooperative relationship to achieve the goal of win-win cooperation. The two parties have agreed on a trade amount of 1.5 billion dollars per year, and the execution period of the contract is three years. If this project is successfully implemented, it will expand the overall revenue scale of Hengtai Aipu and have a positive impact on the company's performance. 3. Profit forecast and investment recommendations expect the company's EPS from 2016 to 2018 to be 0.25 yuan, 0.33 yuan, and 0.42 yuan respectively, and the corresponding PE is 47 times, 36 times, and 28 times, respectively. Crude oil prices slowly rebounded steadily, and the oil and gas sector gradually recovered, benefiting the company's oil service business; the company's fixed price increases of 13.54 yuan and 11.19 yuan, and the stock price margin is high. The company covered it for the first time and gave it a highly recommended rating. 4. Risk warning: International oil prices fluctuate greatly; merger and acquisition integration falls short of expectations.