The inflection point of investment logic transformation: shareholder platform upgrade, business field expansion platform transformation - After Juhua settled in, the shareholder platform changed from Zhuji to Zhejiang state-owned assets: Currently, the company's non-public stock offering plan to Juhua Group has been approved by the board of directors. In the future, if it is approved by the shareholders' meeting and the Securities Regulatory Commission, etc., the company's shareholder platform will change from the Zhuji Municipal State-owned Assets Administration Commission to the Zhejiang State-owned Assets Administration Commission. Business transformation - The field of atmospheric dust removal has expanded to the field of sewage and solid waste to create a fully environmentally friendly industry: The company is currently based in the field of atmospheric treatment. Through this non-public offering, Juhua Group's environment-related assets will be injected into the company, expanding the company's business from the field of atmospheric treatment to the fields of sewage and solid waste treatment, and achieving full coverage of the three major environmental protection fields of atmosphere, solid waste and water treatment. There is great potential for improvement: Profit and technology have high potential to improve performance - the level of net interest rate is low, and there is potential room for improvement: the company's current business net interest rate level is only about 1.7%, ROE is only about 3.5%, and profitability is significantly lower than that of the same type of Longjing Environmental Protection; we believe that in the future, with improvements in top-level governance structure from top to bottom and efficiency improvements brought about by deepening state-owned enterprise reform, the company's profitability has great potential to improve. Technology upgrade - wet dust removal with high barriers, if future standards become stricter or become mainstream again: The company occupies a leading position in the electric dust collector market and has various high-efficiency dust removal technologies such as rotating electrode dust collectors, electric bag dust collectors, and high-frequency power supplies, all of which can be used in the transformation of existing electric dust collectors in the thermal power industry; and the Mitsubishi wet electric dust removal technology introduced by the company in 2013 has become one of the few domestic enterprises with wet electrostatic dust removal technology for power plants. Profit forecast and investment recommendations We forecast that the company's 2013-2015 EPS will be 0.280 yuan, 0.411 yuan (diluted), and 0.668 yuan (diluted), respectively, and net profit growth rates of 133.5%, 112.71%, and 62.58%, respectively. Currently, the corresponding valuation of the company's stock price is 48×14PE and 30×15PE. Although the valuation is high, we believe that the company is in a transition period, with high flexibility in net interest rates, and is in the early stages of an upward trend. At this stage, judging the valuation based only on the performance corresponding to the current low net interest rate level would underestimate the potential flexible value of the enterprise; and considering that the majority shareholder cost is 19 yuan, the current price has also established a sufficient margin of safety. At the current price, we gave the company investment advice. The risk-reward ratio is still very high. The main logic point is that the current price has the safety margin established by the majority shareholder costs. The three major investment opportunities to be gained in the future are: 1. Shareholder level adjustments and state-owned enterprise reform expectations will increase profitability; 2. The smog has forced stricter dust removal standards, and the market will shift from order-driven to technology-driven, and the company has significant advantages; 3. After successfully settling in, Juhua built a large environmental protection platform for the atmosphere, sewage, and solid waste