Event: The company released the 2017 interim report. The company's revenue was 458 million yuan, an increase of 47.19% over the previous year, and achieved net profit attributable to shareholders of listed companies of 72.85 million yuan, an increase of 42.15% over the previous year. Comment: Operating income increased significantly, and the expense ratio for the period was further improved. In the first half of the year, the company's operating income increased sharply by 47.19% to 458 million yuan, and gross margin fell to 25.39% from 31.05% in the same period last year; the period expense ratio was 7.11%, down 1.91pct from the same period last year, mainly due to a decrease in current short-term loans and a decrease in financial expenses of 1.95pct to 0.88%; the company's net interest rate fell slightly by 0.64pct to 15.91% year on year; net cash flow from operating activities during the reporting period fell 799.71% from the same period last year, mainly due to an increase in security deposit payments in the first half of the year As a result; IPO financing greatly optimizes the company's financial structure, and the current debt ratio is 44.50%, a sharp drop from 60.69% in the same period last year. The successful listing has entered the fast track, and the number of new orders signed has exploded. More and more orders in the garden industry are presented in the PPP model, and the amount of a single order is also larger than before for simple construction. This places higher demands on the company's ability to integrate the industrial chain and financing capacity. Companies that lack qualifications and have poor financing capacity have less and less room for survival within the industry. The company first went public last year. Since then, it has entered the fast track, taking the lead in the industry card battle. Since its listing last year, the company has signed an explosion of orders. In the first half of this year, the company signed 1,288 billion yuan in new projects, an increase of 376.21% over the same period last year, signed a framework agreement of 2.3 billion yuan, signed a new 2,228 billion yuan year to date, and announced orders of 5.198 billion yuan since listing, is 10.17 times that of last year's revenue. The order guarantee factor is extremely high. The company's future revenue growth is expected to be high. It is planned to control Zhengzhou Water and improve the industrial chain. After listing, the company's financing capacity increased dramatically. Branches and offices were set up in East China, North China, South China, Southwest China, Southwest China, and Northwest China respectively; the company announced that it plans to acquire 60% of the shares of Zhengzhou Water with 252 million yuan. Based on the net profit of 25.8 million yuan in 2016, the acquisition of PE is about 16.6 times. Furthermore, Zhengzhou Water promised that the net profit from 2017 to 2019 will not be less than 40,000, 4700, and 55.4 million yuan. After the announcement, the company's performance will be greatly enhanced. Zhengzhou Water has the qualifications of Level 1 General Contracting for Water Resources and Hydropower Projects, Level 2 General Contracting for Housing Construction, Level 2 for Earthwork Engineering, and Level 2 for Prefabricated Concrete Components. After the acquisition is completed, the company's industrial chain will be further improved. Financial forecast and valuation: We predict that the company's EPS from 2017 to 2019 will be 0.29, 0.43, and 0.57 yuan, and the corresponding PE will be 61X, 42X, and 31X respectively, giving it an “increase in holdings” rating. Risk warning: Order execution falls short of expectations, and extension integration falls short of expectations.