Investment points: Maintain profit forecasts and maintain the “increase in holdings” rating: Predict that the company Fengcai Ecology will contribute 100 million yuan in investment income in 2016. The company's net profit for 15-17 is estimated to be 214 million/353 million/378 million yuan, with a growth rate of -46%/65%/7% respectively; corresponding PE is 52X/32X/31X respectively. Core assumption: The company's main business maintained steady growth, and the development of new business was in line with expectations. Different from the public's perception: (1) The company is a garden enterprise with high asset quality, good cash flow, and proper risk control. Since the company's listing, the compound profit growth rate has been 28.8%. In the 3rd quarter of '15, the company's balance ratio was only 32%, with an industry average of 59%; the company's average earnings ratio for 12-14 was 64.5%, the industry average was 54.1%; and accounts receivable within one year of the 15-year report reached 83.4%. The company had cash on hand of 840 million yuan in the third quarter of '15, and repayments were good in 2015. Cash on hand is expected to continue to increase. (2) 15 years of environmental protection business transformation kicks off. The company acquired 100% of Deep Blue Environmental's shares through the issuance of shares in 2015 and entered the garbage leachate treatment industry. Deep Blue Environmental Protection has successively undertaken close to 80 landfill leachate treatment projects. Deep Blue Environmental Protection has promised a net profit of 3200/4640/6728/90.82 million yuan in 2015-2018. It is estimated that the amount of leached garbage in China will reach 100 million tons in 15 years. Currently, the effective treatment rate of food waste in China is less than 30%, and there is still plenty of room for development in the future. The company entered the industry through the acquisition of Deep Blue, and is expected to further expand the environmental protection sub-sector, which has a lot of room for development and good cash flow in the future. (3) Real estate gardens benefit from real estate inventory removal. Removing inventory from real estate is the key to “three, one reduction and one supplement.” Although first-tier purchase restrictions are getting stricter, there is still a lot of room for second-tier, third-tier real estate to pick up, and there is a high probability that real estate sales and new construction will exceed expectations this year. As a leader in real estate and gardening, orders at the beginning of the year have been steadily picking up, and the main business is expected to achieve good growth this year with manageable risks. (4) Benefit from sponge city construction and PPP promotion. Sponge cities are the focus of new infrastructure. According to the State Council's plan, the 13th Five-Year Plan investment is expected to reach 1.43 trillion yuan. Among them, sunken green spaces, urban wetlands, etc. are the main construction elements, and the company's municipal garden sector will benefit from the investment in sponge cities. PPP is the main model that will drive infrastructure investment in the future. The company mainly selects investment in PPP projects with guaranteed payback or sufficient operating cash flow, which will also contribute an increase to future performance. Catalysts for stock price performance: expansion of new business areas, profit growth exceeding expectations, etc.