Incident: The company issued an announcement on October 11 to formally sign the “Ningdong Mining Area Mine Water and Coal Chemical Wastewater Treatment and Utilization Project Process Package and Process Equipment (Phase I) Supply Contract (Phase I)” with China Fifth Ring Road. The total contract price is 190 million yuan. Jointly signed a supply contract with China Fifth Ring Road to consolidate revenue performance. The contract determined that the company will act as the supplier to provide patent technology licenses, process package design, process equipment materials, production chemicals, and technical services and training for the first phase of the Ningdong mining water and coal chemical wastewater treatment and utilization project. The total price of the contract signed this time is about 190 million yuan, accounting for 11.46% of the company's 2016 revenue. The smooth execution of this contract will significantly increase the company's sales revenue in the fourth quarter of 2017 and the first half of 2018, which will have a positive impact on the company's performance. Capital increases in Beijing Shenghua and Ikos have driven steady growth in performance. On September 20, the company increased capital for the Jingshenghua Hazardous Waste Project by 201 million yuan. After the project is fully completed, it will become the largest annual comprehensive hazardous waste treatment project in Heilongjiang Province. The first phase of construction is currently underway. The scale of comprehensive treatment of hazardous waste is about 83,900 tons per year. It is estimated that the net profit after delivery of the project will reach 70.99 million yuan/year. In 2016, the company increased its capital to Ikos and became the largest shareholder, holding 45% of the shares. During the reporting period, the implementation progress of the Huizhou Ikos' C5/C9 separation and comprehensive utilization EPC project was 52.37%, with confirmed revenue of 415 million yuan, and cumulative confirmed revenue of 476 million yuan, accounting for 39.94% of total revenue, which became the main driving force for the company's performance growth. Deploy water environment management and build a comprehensive environmental protection service provider. Through acquisitions that transcend science and innovation, and comprehensively introduce cutting-edge technology and mature teams in emerging fields such as water environment management and ecological restoration, the company has obtained water environment management qualifications, and the company's comprehensive environmental protection service provider strategy has been further promoted. In the short term, the company is expected to benefit from the proximity of the Black and Smelly River Assessment and an 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. Furthermore, the company is actively developing the field of waste acid treatment. In the first three years after the first phase was put into operation, the performance was impressive, with an annual net profit of about 13.5 million yuan. The total waste acid market is huge, there is still room for the 10 billion dollar market, and the prospects are broad. Investment rating and valuation: The company's net profit for 2017-2019 is estimated to be 405 million, 584 million and 710 million yuan, EPS of 0.47 yuan, 0.67 yuan, and 0.82 yuan, and price-earnings ratios of 42 times, 29 times, and 24 times respectively, giving it a “buy” rating. Risk warning: Project progress falls short of expectations; market competition risk