Event: On October 25, the company announced its report for the third quarter of 2017. The company achieved revenue of 1,527 billion dollars in the first three quarters, an increase of 27.11% over the previous year, and net profit of 296 million yuan, an increase of 48.72% over the previous year. The increase in the company's revenue was mainly due to the smooth progress of Huizhou Ikos and Jilin solid waste phase II projects. At the same time, project repayments were good during the reporting period. Net cash flow from operating activities increased by 78.53% year-on-year, increasing capital in Beijing Shenghua and Ekos, boosting the company's performance. On September 20, the company increased capital of the Jingshenghua Hazardous Waste Project by 201 million yuan. After the project is fully completed, 42 types of hazardous waste can be treated, which will become the largest annual comprehensive hazardous waste treatment project in Heilongjiang Province. It is currently underway with the first phase of construction, with an annual comprehensive hazardous waste treatment scale of about 83,900 tons. It is estimated that the net profit after delivery of the project will reach 70.99 million yuan/year. At the same time, in 2017, the company increased Jilin solid waste capital by 228 million yuan for subsequent production and construction. After the expansion is completed, the production capacity will reach 160,000 tons/year. In 2016, the company increased its capital to Ikos and became the largest shareholder, holding 45% of the shares. In the first half of the year, 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 black and smelly water bodies and waste acid treatment to create 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. Meanwhile, the company signed 190 million supply contracts with China Fifth Ring Road in October, accounting for 11.46% of the company's 2016 revenue. Among them, the company provided process equipment, pharmaceuticals and other services for the first phase of the mine water and coal chemical wastewater treatment and utilization project in the Ningdong mining area. 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. 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 44 times, 30 times, and 25 times respectively, giving it a “buy” rating. Risk warning: Project progress falls short of expectations; market competition risk