Key investment events: The company's 2017 Second Extraordinary General Meeting of Shareholders resolved to deliberate and pass the “Proposal on Proposed Issuance of Medium-Term Notes”. The total amount issued did not exceed 1 billion yuan. The issuance of this winning ticket guarantees the smooth progress of existing business and new business from a financial perspective. The current business sector is growing steadily, with a performance growth rate of 49% to 58% in the first three quarters. 1) Engineering business: C5/C9 orders ensure rapid growth in engineering business. In the first half of 2017, the company's engineering contract project revenue was 595 million yuan, up 87% year on year, and gross margin increased 0.5 percentage points to 21.5% year on year. Among them, the total contract amount for C5/C9 separation and comprehensive utilization EPC projects was 998 million yuan, revenue for the first half of the year was 415 million yuan, cumulative confirmed revenue was 476 million yuan, and project execution progress was 52%. 2) Haotian's energy-saving insulation pipe business: used in heating pipe networks, gas pipelines, etc., with steady growth. In the first half of 2017, the company's direct insulation project revenue was 189 million yuan, up 20% year on year, and gross margin fell 11 percentage points to 22.7% year on year. Currently, the insulation pipes produced by Haotian Energy are widely used in urban central heating primary pipeline networks, industrial steam transmission pipelines, oil and gas transmission pipelines, etc., and downstream demand is steadily increasing. 3) Hazardous waste business in Jilin: In the first half of 2017, Jilin's solid waste revenue was 50.47 million yuan, an increase of 25% over the previous year; the net profit of solid waste in Jilin was 30.15 million yuan, an increase of 17% over the previous year. The post-delivery treatment capacity of Jilin Solid Waste Phase II will increase to 163,000 tons/year. Experts in the treatment of black and smelly water bodies have carried out a number of demonstration projects beyond science and innovation, and it is hoped that the order will be successfully implemented. In the first half of 2017, the company acquired 100% of Chaoyue Kechuang's shares for 18.5 million yuan. Beyond science and innovation, the main field of water environment management. It surpasses technology for black and smelly water bodies and environmental restoration in Hong Kong that has been accumulated over many years through science and innovation, and has already carried out a number of demonstration projects. After completing the mergers and acquisitions, it will rely on the company to facilitate the implementation of related projects. This business is currently progressing, and it is expected that significant profits will be obtained in the future. The company currently holds 45% of Huizhou Ikos shares, and the carbon-5/carbon-9 separation and deep processing business is progressing gradually. Combined with pre-project investment, Huizhou Ikos's overall investment amount will reach 2.69 billion yuan. After the project is fully completed, the annual output value is about 4.6 billion yuan, and the annual gross profit is about 1.19 billion yuan. It is expected that the first phase of construction will be completed by the end of the year and put into operation in early 2018. Acquired Shanghai Hengjing to innovate processes to treat steel waste acid. In August 2017, the company plans to increase its capital in Hengjing, Shanghai by 60 million yuan. After the capital increase is completed, the company's shareholding ratio will be 51%. Bazhou currently has 10,000 tons/day of waste acid to be treated. The country produces more than 100 million tons of various industrial waste acids every year, and the treatment gap is huge. The first phase of the Bazhou project is 1000 tons/day, and the second phase is 3000 tons/day. Profit forecasts and investment advice. The 2017-2019 EPS is expected to be 0.47 yuan, 0.70 yuan, and 0.97 yuan respectively. The current stock price corresponds to a price-earnings ratio of 39 times, 26 times, and 19 times; the compound growth rate of net profit from the mother over the next three years will reach 47%. Currently, the company's valuation is in a reasonably low position, covering the “increased holdings” rating for the first time. Risk warning: The progress of new orders is below expectations, the progress of M&A projects is not as good as expected, and the progress of completion and commissioning of construction projects is not as good as expected.