We predict that the EPS of the company from 2017 to 2019 is 1.25,1.73,2.03 yuan respectively, corresponding to PE of 51 times, 37 times and 32 times. The company is the leader of the global ice-making industry, with the fund-raising project put into production, the core competitiveness is further enhanced. The company's performance increased significantly in the first half of 2017, and the full-year performance is expected to improve further. The company will continue to speed up the layout in the field of new energy and build a large ecological closed loop. We are optimistic about the future development of the company, covering it for the first time and giving it a "recommended" rating.

The performance increased significantly in the first half of the year, and the growth rate for the whole year is expected to further improve: when the company released its semi-annual report for 2017, its main business income in the first half of the year was 417 million yuan, an increase of 17.87% over the same period last year, and its net profit was 10.7975 million yuan, an increase of 382.25% over the same period last year. The substantial increase in performance is mainly due to the continuous recovery in the downstream of the main business and the substantial growth in revenue of Jiayun oil and gas service subsidiary. The company's period expense items increased steadily with the expansion of the sales scale, of which the sales expense was 29.26 million yuan, an increase of 42.47% over the same period last year, mainly due to the increase in sales staff labor costs, transportation costs and Jiayun only included May and June data in the same period last year. The company's financial expenses were 19.07 million yuan, an increase of 115.69% in the current period, mainly due to the increase in interest expenses and exchange gains and losses. In terms of business, revenue from ice-making products reached 138 million yuan, down 28.90% from the same period last year; revenue from compressor business reached 109 million yuan, up 42.25% from the same period last year; revenue from central air-conditioning systems reached 56.937 million yuan, up 33.49% from the same period last year; and revenue from oil and gas technical service products reached 113 million yuan, an increase of 184.12% over the same period last year. As the downstream of the company continues to pick up, the company's performance growth is expected to further improve.

Speed up the layout of the new energy field and build a large ecological closed loop: during the reporting period, the company joined Tsinghua University, Yutong bus, Antai Science and Technology, Shanghai Jiaotong University, Beijing Institute of Technology, Wuhan University of Technology and other 12 enterprise colleges and universities. based on the 712 Research Institute of China Shipbuilding heavy Industry Corporation The "Fast dynamic response fuel Cell engine Research and Development Project" was selected into the 2017 project publicity list of the key projects to be established by the national key research and development plan "New Energy vehicles". In addition, the company further speeds up its technology research and development and application in the hydrogen energy field, drives the layout of the accelerated hydrogen energy industry chain through investment, subscribes for Hydrogenics, a Canadian hydrogen fuel cell manufacturer, and continuously increases core technology investment in hydrogen energy and fuel cell field. Hydrogenics is one of the only "one-stop" technology world-class leaders in the global hydrogen energy and fuel cell industry. This investment will help the company to seize the commanding heights of new technologies, improve the hydrogen energy and fuel cell industry chain, and gradually achieve coordinated development with other industries of the company, build a complete ecological closed loop, and enhance the company's comprehensive competitiveness and brand awareness.

Global ice industry leader, fund-raising projects put into operation to enhance core competitiveness: in recent years, the company, as a leading enterprise in the global ice-making equipment industry, has mastered the core technology of compressors and high-end turbine machinery through a series of international mergers and acquisitions, holding or shareholding, and gradually formed the industrial layout of ice-making equipment and ice and snow sports equipment, refrigeration and industrial heat pumps, cold chain logistics and new energy fields. The fund-raising investment project "assembly and supporting project of refrigerated compression condensing unit" has completed the preliminary work such as project construction, equipment installation, commissioning and trial production, and is now officially put into operation. The commissioning of the project will further enhance the company's core competitiveness in the field of refrigeration equipment and will have a positive impact on the company's future business performance.

Risk hint: downstream market demand is lower than expected; new energy business development is not as expected.