Company Overview: The traditional business is CNC sheet metal, and the energy saving and environmental protection industry The company is a leading domestic manufacturer of CNC sheet metal structural parts. Its customers cover various industries such as electricity, communications, finance, and new energy. ② In 2014, it successively acquired 100% of Nanjing Youzhi's shares to enter the flue gas flow monitoring industry, and 51% of Shanghai Apani's shares to expand the high-voltage electrode boiler energy storage and heating business. ③ In December '15, a draft was issued to acquire 100% of Jiechi Technology's shares to lay out the field of online recycling and treatment of etching liquid for PCB clean production. Growth point 1: The acquisition of Jiechi Technology and entered the PCB etching solution recycling industry at a cost of 1.06 billion yuan (203 million yuan in cash+additional 887 million yuan) to acquire 100% of Jiechi Technology's share+raise no more than 580 million in supporting capital. The net profit achieved by Jiechi Technology in 15/16/17/18 was not less than 0.4/0.7/1/130 million yuan, respectively. ② Jiechi is a leader in the field of PCB etching solution recycling. Compared with terminal treatment, Jiechi's online recycling method is more economical, has leading technical level, and strong customer resources. ③ The acquisition solved the capital bottleneck and helped Jiechi quickly explore the 100 billion market space in the PCB etching liquid recycling market. Growth point 2: Demand for matrix flow monitoring equipment is being released at an accelerated pace. Youzhi welcomes a high growth period, and Youzhi is a leader in the field of flue gas matrix flow monitoring that has mastered core technology. It has strong profitability and a net profit margin of 40% +. ① Youzhi matrix flow measurement technology successfully solved traditional problems such as poor measurement accuracy and stability of power plant environmental equipment. ② The policy continues to strongly promote total pollutant control. The general idea of the “13th Five-Year Plan” for environmental protection suggests strengthening the construction of a total pollutant control system, proposing to approve sewage charges according to automatic online monitoring data, and drastically raising the sewage fee collection standards, so that the demand for accurate online monitoring of flue gas will be released. In order to avoid financial losses due to inaccurate traffic data monitoring (missed subsidies+mistakes being fined, etc.), companies will be more motivated to install highly accurate flow monitoring equipment. ③ The market space for flue gas flow monitoring equipment is over 10 billion dollars. Growth point 3: In the context of accelerating the replacement of small coal-fired boilers, the Apani Regenerative Heating Project is expected to accelerate the development of Shanghai Apani's introduction of world-class high-voltage electrode boiler equipment and advanced energy storage technology from Low Valley Electric to provide industrial heating and municipal heating solutions. ① Electrode boilers have the advantages of high safety, high efficiency and high reliability. ② A cooperative framework agreement was signed with CGN Energy in June last year, focusing on promoting urban centralized heating projects and energy-saving transformation projects for traditional coal-fired boiler heating projects. The traditional sheet metal business is steady, shifting to high-end manufacturing of automated equipment. The company cooperates with famous universities to develop a series of advanced automation equipment, and plans to jointly build an RCT brand (China region) owned by a listed company, gradually expanding from traditional sheet metal processing to high-end equipment manufacturing. The profit forecasting and rating company adheres to the strategy of endogenous and epitaxial development of energy saving and environmental protection businesses. The traditional sheet metal business is growing steadily, Apani is expanding steadily, and Youzhi and Jiechi are both in a period of high growth. We expect the company's 15/16/17 EPS to be 0.19/0.62/0.95, corresponding to PE129/39/26 times, respectively, and give it a “buy” rating.