Key points of investment 1. The acquisition of Rickshing Engineering strengthens the company's traditional business. Rickshing Engineering specializes in the design and manufacture of construction machinery and equipment, power and electrical automation equipment, which will further strengthen the company's traditional businesses such as forging, pile foundation, and surveying. Rexing Engineering promises to achieve net profits of no less than 29 million, 32.5 million, and 36.5 million in 16-18. 2. With the acquisition of Themed Latitude, Zhejiang Zhongqing continues to increase the construction and operation of general aviation airports. With its experience in the construction of airport field projects over the years, the company has actively developed general aviation airports and has invested in the construction of general aviation airports such as Anji in Zhejiang, Gaoyou in Jiangsu, Rudong in Jiangsu, and Huangshan in Anhui. Among them, the runway and main building of Anji General Aviation Airport have already been completed. The plan is to apply for a license to use the civil airport this year to carry out general aviation operations. Themed Latitude is mainly engaged in the planning and design of general aviation towns and themed industrial parks. Through the acquisition of Themed Latitude, the company's planning and design capabilities in the general aviation airport project and surrounding areas have been improved, and the company's ability to operate the entire life cycle of the general aviation airport has been enhanced. Theme Latitude promises to achieve net profit of no less than 9.1 million, 11 million, and 13 million in 16-18. Zhejiang Zhongqing focuses on general aviation airport investment, construction and service. After this acquisition, Zhejiang Zhongqing will become a wholly-owned subsidiary of the company, further enhancing the company's ability and efficiency in general aviation airport operations. 3. The liberalization of the general aviation market requires “machine” construction first, and companies will benefit first. The liberalization of the general aviation market has put a lot of demand on the construction of general aviation airports. Currently, the domestic general aviation market is only over 100. It is estimated that by 2030, the demand for general aviation airports in China will reach more than 2000, and the market space will exceed 300 billion. China will build more than 500 general aviation airports during the “13th Five-Year Plan” period. With its perfect general aviation airport construction and operation layout, the company will first benefit the industry. 4. The profit forecast predicts that the company will achieve net profit of 367 million, 493 million, and 562 million yuan attributable to the parent company in 16-18. The corresponding EPS is 0.21, 0.28, 0.32 yuan, and the corresponding PE is 43X, 32X, and 28X, giving recommended ratings. 5. The risk suggests that the general aviation market is developing less than expected.