Event description: The company expects the net profit attributable to shareholders of listed companies achieved from January to September 2013 to increase between 100% and 120% compared with the same period last year. The company said that the main reasons for the increase in performance are: 1) Facing the severe environmental ecological test of pollutant emissions caused by coal-fired boilers, the country's emission requirements for coal-fired power plants have increased, and strict control and reduction of PM2.5 emissions have led to a significant increase in equipment transformation in the domestic power industry over the same period. Affected by this, during the reporting period, the company's main business revenue increased compared to the previous year; 2) there was a marked decrease in financial expenses compared to the same period last year. Comment: The company's business conditions continued to improve in the third quarter. In the first half of 2013, the company achieved net profit attributable to owners of the parent company of 15.22 million yuan, an increase of 107% over the previous year. The increase in net profit was mainly due to increased business revenue and effective control of costs during the period. The current performance forecast shows that the company's business conditions in the third quarter maintained the growth momentum of the first half of the year and continued to improve. Market demand for environmental protection equipment has benefited from the country's influence on environmental management macroeconomic policies and the increase in standards for polluting emission enterprises, gaining opportunities for the growth of the company's dust removal business. Domestic projects to build new large-scale coal-fired units (600 MW) or more and remodeling projects have grown rapidly, and domestic contract orders have increased rapidly compared to the same period last year. Orders have continued since the second half of the year. In August, it won the bid for the Hefei solid waste incineration power plant project, worth 17.11 million euros; the company also became a candidate for the flue gas purification system for the renewable energy power plant project in the Haidian District Circular Economy Industrial Park, with a total bid price of 54.99 million yuan. Currently, the company has sufficient orders in hand. With the advancement of boiler dust emission reduction equipment projects and dust removal equipment supporting product projects, the company's performance growth momentum is expected to be guaranteed. Foreign investment targets PM2.5 management. The company invested in the establishment of a wholly-owned subsidiary, Hangzhou Feida Environmental Technology Research Institute Co., Ltd., in Qingshan Lake Science and Technology City, Lin'an City, Zhejiang Province. The investment target is estimated to have a total investment of 115 million yuan, and the civil works are expected to be completed within 2 years. The business scope mainly targets fine dust PM2.5 treatment technology. 2013 is the middle of the 12th Five-Year Environmental Protection Plan. At the same time, influenced by the concept of “beautiful China,” various policies will further promote the development of the environmental protection industry. In response to the recent severe smog and haze phenomenon in many regions, the Ministry of Environmental Protection proposed that from March 1, 47 prefecture-level cities and above in key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta will face stricter air pollutant emission control. The company's development in the field of electrostatic dust removal is relatively mature. Currently, the direction of business development will be extended to the dust removal transformation of steel and other metallurgical industry equipment. With the company's many years of experience in the field of PM2.5 control, diversification of downstream industries will further enhance the company's market size in the field of environmental protection and benefit development prospects. Profit forecasts and investment ratings. We expect the company's EPS for 2013-2015 to be 0.16 yuan, 0.18 yuan, and 0.22 yuan respectively. Based on the latest closing price of 19.52 yuan, the dynamic price-earnings ratio is 122 times, 108 times, and 89 times, respectively. Considering that although the company's profitability has improved, the valuation level is relatively high, we will maintain the company's “neutral” investment rating for the time being. Risk warning: 1) The construction of the fund-raising project falls short of expectations