Highlights of the report describe the company's recent release of the 2017 semi-annual performance forecast. It is expected to achieve net profit of 57.2214 million yuan to 686.657 million yuan in the first half of the year, an increase of 0% to 20% over the previous year. The incident review business segment maintained healthy and orderly development, and performance improved steadily. The company actively deployed business segments such as heavy metal restoration, environmental consulting, air purification, new energy, and operation, and its main business continued to develop in an orderly manner. In the first half of 2017, the company achieved non-recurring profit and loss of 12 million yuan, an increase of about 6.77 million yuan. After deducting the impact of non-recurring profit and loss, the company's net profit growth rate in the first half of 2017 was -13.03% to 8.98%. The main reason was that the company began to actively deploy nationwide, but expenses increased significantly during the initial period. As the company continues to lay out its waste power generation business and new energy business, it will further contribute to the company's performance. Entered the food waste field for the first time, and the business achieved diversified development. In April 2017, the company signed the “Nanning Kitchen Waste Resource Utilization and Harmless Treatment Plant Renovation and Expansion Project (EPC) General Contract” with a total investment of 120 million yuan. This is the first food waste collection, transportation and treatment service project undertaken by the company. It marks the company's entry into the food waste field and diversified development of the solid waste business. Food waste disposal is expected to become a new performance growth point in the future. The soil restoration business layout has been expanded again, and the effects of the national layout continue to be unleashed. Since 2017, the company's soil remediation business has continued to expand. As a consortium, it won the bid for the soil remediation project in Jinan City, Shandong Province, and also won the bid for the Mianzhu Cultivated Land Soil Treatment and Remediation Project in Sichuan Province, the general contracting project for arable land soil treatment and restoration projects in the Dongdagou Basin in the upper reaches of the Yellow River. The soil restoration business has developed steadily, and the national key layout strategy has begun to show results. In the future, we will develop our business with soil restoration and environmental consulting as the core, maintain our dominant position in the field of atmospheric treatment, and actively expand clean energy and waste incineration businesses. The soil remediation market ushered in a period of full explosion with the release of the “Ten Rules for Soil”, and the market prospects are optimistic; the company's EIA team successfully upgraded in 2016, and the environmental consulting market will release more market space, and the diversion effect may gradually become apparent. In addition, the company will continue to expand its waste incineration business and dig deeper into the entire waste incineration power generation industry chain. We expect the company's EPS from 2017 to 2019 to be 0.33, 0.39, and 0.51 yuan, respectively. The corresponding valuations are 35x, 29x, and 22x, respectively, maintaining a “buy” rating. Risk warning: 1. New orders are progressing faster than expected; 2. The initial market results of the company's national layout were poor.