Report Summary: [Case Report: _S Gong U Department MM Issued A Report] The 2007 mid-year report achieved revenue of 1,039 million yuan, an increase of 40.71% over the previous year, and realized net profit of 206 million yuan, an increase of 45.65% over the previous year. The increase in the company's net profit was mainly due to the smooth progress of the Huizhou chemical project. Benefiting from good project repayments during the reporting period, the company's net cash flow from operating activities was 92 million yuan, an increase of 152.26% over the previous year. The capital was increased to hold ICOS, and the project promoted performance. The company increased its capital to ICOS in 2016 and became the largest shareholder holding 45% of the shares. During the reporting period, the Huizhou ECS carbon 5/carbon 9 separation and comprehensive utilization EPC project progressed by 52.37%, with confirmed revenue of 415 million yuan. The cumulative confirmed revenue was 476 million yuan, accounting for 39.94% of the company's total revenue, which became the main driving force for the company's performance growth. Capital was increased to develop solid waste guarantee business in Jilin, and the acquisition of Taihu Petroleum seized opportunities in the sludge disposal industry. In 2016, Jilin Solid Waste officially entered the production and operation period, treating industrial, medical and other hazardous solid waste, with a production capacity of 110,000 tons/year; in 2017, the company increased the capital of solid waste in Jilin by 228 million yuan for subsequent production and construction; Jilin Solid Waste is currently advancing the second phase of construction, and the production capacity will reach 160,000 tons/year after the expansion is completed. Furthermore, by acquiring 51% of Taihu Petroleum's shares and holding Taihu Petroleum, the company has successfully seized opportunities in the industry by entering markets such as oil-based drilling chips and sludge disposal. Lay out water environment treatment and build a comprehensive environmental protection service provider. Through the acquisition of cutting-edge technology and mature teams in emerging fields such as water environment treatment and ecological restoration, the company surpassed science and innovation, and obtained water environment treatment qualifications. Currently, the company has carried out demonstration projects in Shanghai, Changshu, Hangzhou, etc., with remarkable results. After the acquisition surpassed science and innovation, the company's comprehensive environmental protection service provider strategy was further promoted. In the short term, the company is expected to benefit from the upcoming Black and Smelly River Assessment and increase in performance. In the long term, the company will benefit from the advantages of a comprehensive environmental protection service provider and enhance its competitiveness in the industry. The water operation project runs smoothly, laying the foundation for comprehensive environmental protection. During the reporting period, the company won the bid for the Shenhua project, signed a procurement contract for the Xinpu chemical condensate refining system, and renewed the Qingyang Petrochemical trusteeship and operation contract. The water operation project was running smoothly, laying a solid foundation for comprehensive environmental protection. Investment rating and valuation: The company's net profit for 2017-2019 is estimated to be 405 million yuan, 584 million yuan and 710 million yuan, and EPS of 0.47 yuan, 0.68 yuan, and 0.82 yuan, with price-earnings ratios of 39 times, 27 times, and 22 times, respectively. Give it a “buy” rating. Risk warning: Environmental business expansion falls short of expectations; market competition intensifies