The company's 2015 interim report achieved revenue of 1,736 million yuan and net profit of 230 million yuan, a year-on-year decrease of 3.09% and an increase of 27.68%, respectively, and EPS of 0.38 yuan. Key investment points: The price of denitrification catalysts fell sharply, and the interim report performance was slightly lower than expected. The company achieved revenue of 1,736 billion yuan in the first half of this year, a year-on-year decrease of 3.09%. Net profit of the mother was 230 million yuan, an increase of 27.68% over the same period last year (an increase of 50 million yuan). Dosage prices for denitrification catalysts fell sharply during the reporting period, leading to a sharp decline in the company's revenue from this business year on year. Reasons for the year-on-year increase in net profit (calculated according to the tax rate of 22.19% in the announcement): 1. The net profit of the franchise during the reporting period was 57 million yuan, accounting for 31.33% of the net profit of the original mother in the same period last year; 2. The company's reduction in Southwest Securities brought after-tax revenue of 130 million yuan, accounting for 71.88% of the net profit of the same period last year; 3. Due to a sharp decline in catalyst sales and an increase in engineering subcontracting volume, denitrification catalysts, environmental engineering and other businesses, net profit of denitrification catalysts, environmental engineering and other businesses fell by 1.05, 0.21, and 09 million yuan respectively. The integration of water services has formed a large scale, and the group's environmental protection platform pattern is beginning to appear. The company's focus has changed from the business related to desulfurization and denitrification to the entire business of environmental protection platforms. The refinement of the power plant water treatment project and the implementation of Jiro's first power plant “Mizushima” demonstration project have doubled the company's integrated water service capacity. The company established Chongqing Yuanda Water Co., Ltd. The water treatment contract in Beipiao City reflects the rapid response of the company's new management to the strategic goals of water development, and the company can be expected to expand rapidly. Furthermore, in the future, the company is expected to use the advantages of platform resources to carry out catalyst recycling and disposal business and enter the field of hazardous waste treatment. The PPP agreement was successfully signed to promote pilot cooperation projects in the fields of water affairs and energy saving. The company announced on May 30 that it signed a PPP agreement for comprehensive energy management with Guixi City; on June 27, it signed a PPP agreement with Beipiao City for sewage treatment projects. The company fully seizes the opportunity for the country to promote the PPP model, promote pilot PPP models in the fields of water and energy saving in the Liaoning and Jiangxi regions, and expand the company's customer base and business space. In the future, we are optimistic that the company will “catch up” in this area. Build the first domestic listing platform for nuclear environmental protection. The company is one of only three domestic enterprises with medium and low emission nuclear waste treatment licenses, and is also the first company to undertake an off-stack nuclear waste treatment project for a nuclear power plant using the EP method. Relying on the implementation of the Shandong Haiyang Nuclear Power Plant SRTF project, the company is beginning to have full-process nuclear environmental protection service capabilities, and is expected to achieve performance growth in the field of nuclear waste treatment. Investment rating and valuation: Regardless of new businesses such as nuclear waste, hazardous waste, and carbon trading, we maintain the company's 15-17 revenue forecasts of 38.39, 42.03, and 4,515 billion yuan (3.484 billion yuan in 2014), and net profit of 4.14, 3.17, and 347 million yuan respectively. The corresponding EPS is 0.69, 0.53, and 0.58 yuan/share, respectively. Considering that the company's water sector has begun to gain strength, the company has entered a golden period of development and maintained a “buy” rating.