Report Guide Recently, the company issued an announcement to sign a strategic cooperation agreement with the Wuhan Institute of Geological Resources and Environmental Technology to jointly promote the application and promotion of hydrogen fuel cell vehicles. Key investment points signed a strategic cooperation agreement for hydrogen fuel cell vehicles. Recently, the company issued a notice to sign a strategic cooperation agreement with the Wuhan Institute of Geological Resources and Environmental Industry Technology to jointly promote the application and promotion of hydrogen fuel cell vehicles. The Wuhan Institute of Geological Resources and Environmental Industry Technology was jointly founded by China University of Geosciences (Wuhan) and the Wuhan Municipal Government to promote the development of the hydrogen energy industry. The company's strategic cooperation with the research institute will introduce advanced technology for the design and construction, core equipment design and manufacture of 70 and 35 MPa hydrogen refueling stations by third party companies to achieve localization of core equipment for hydrogen refueling stations. The two sides are also considering forming joint ventures or project companies that include hydrogen production, hydrogen storage, and hydrogenation to jointly promote the application of hydrogen fuel cell vehicles and other related businesses in the Sichuan, Chongqing, and Hubei regions; and form a close industrial community to jointly promote the closed loop of the hydrogen energy industry and the formation of an industrial ecosystem. In December of last year, the company signed strategic cooperation agreements with six organizations, including Tsinghua University, Beijing Hydrogen Era Environmental Technology Co., Ltd., Chengdu Bus, and Shanghai Pujiang Special Gas, to accelerate the demonstration promotion of HCNG (natural gas hydrogenation) fuel vehicles. The signing of this strategic cooperation agreement has further improved the company's layout in the field of hydrogen fuel cell vehicles! Policies to promote the development of the hydrogen fuel cell vehicle industry On September 20, Shanghai released the “Shanghai Fuel Cell Vehicle Development Plan”, which proposes to strengthen the top-level design of the fuel cell vehicle industry, clarify the development path of fuel cell vehicle technology, accelerate the improvement of the entire fuel cell vehicle industry chain, and promote the scale and commercialization of fuel cell vehicles. In the past two years, relevant national ministries and departments have also intensively introduced policies to strongly support the development of fuel cell vehicles. The “Outline of the National Innovation-Driven Development Strategy” and the “13th Five-Year Plan” National Science and Technology Innovation Plan have listed the development of hydrogen energy and fuel cell technology as key tasks. LNG carriers have broad prospects, and their performance is expected to gradually materialize. On August 28, the company signed a strategic cooperation agreement with Yongchuan District of Chongqing. The company is responsible for comprehensive clean energy utilization projects, driving a total investment scale of about RMB 4 billion, involving projects such as comprehensive utilization of shale gas, gasification of the Yangtze River, and safety (environmental protection) management. The company is responsible for project investment and financing, engineering design, engineering construction, project procurement, project operation and project handover. The signing of this strategic agreement marks a new breakthrough in the company's energy engineering business layout. The gross margin of the company's EPC project business in the first half of 2017 was 20.52%, and the net profit margin was as high as 9.18%. If the Yongchuan project is fully implemented, the company's performance will be greatly enhanced. The profit forecast and valuation do not take into account the influence of the Yongchuan project. The company is expected to achieve net profit of 2.03/3.10/383 million yuan in 17-19, corresponding to EPS of 0.55, 0.84, and 1.03 yuan/share, respectively. Considering the influence of the Yongchuan project, the company's net profit for the year 17-19 is estimated to be 2.03/3.90/565 million yuan, corresponding to EPS of 0.55, 1.05, and 1.52 yuan/share, respectively, and continue to maintain the “buy” rating.