The report guide company is a leading manufacturer of cold chain equipment and special containers in the country. Its main products are refrigeration equipment and tank containers, mainly quick-frozen products. In the context of benefiting from the recovery of the downstream industry and the increase in demand for the use of the company's products, the company's performance will achieve significant growth. Key investment points The volume and price of the tank container business is rising rapidly, and the performance is expected to continue to grow. The company is a leading domestic manufacturer of special containers, mainly producing tank container products for the world's largest rental companies. Downstream tank containers are mainly used in liquid chemical products, food and beverage and energy industries. We believe that 1) global trade is picking up, and the recovery in trade volume is driving an increase in container demand; 2) the downstream industry is booming, mainly reflected in the recovery in the chemical industry, steady growth in the food and beverage industry, and the increase in the development of energy industries such as marine oil and gas, which will drive the increase in demand for tank containers; the rise in steel prices has led to a rise in terminal product prices. Under the logic of a sharp rise in volume and price, the company's business performance will grow rapidly. Demand for frozen food continues to rise, driving a steady rise in refrigeration equipment performance. The company is deeply involved in the field of refrigeration equipment, especially quick-freezing equipment, and is at the leading level in the country. The downstream refrigeration equipment industry is the frozen food industry. In the past two years, many snack food, frozen food and catering companies have gone public and raised capital throughout the country to open up space for demand for frozen equipment; benefiting from the increase in overall demand in the frozen food industry, the company added customers such as Zhou Hai Duck and Delicious Duck Neck, and the company's refrigeration equipment performance increased in 2017. It is expected that the company will continue to receive opportunities to cooperate with such companies in the future, and the pace of growth is steady. The fund-raising project progressed gradually, and the company's competitive advantage was clearly based on downstream market demand. After the company went public, the project construction schedule was adjusted in a timely manner, and the construction of the fund-raising project was accelerated. At present, the company's cold chain equipment technology center project has been completed, and the tank container production expansion project and the cold chain equipment production expansion project are under active construction. It is expected that after the project is completed, the company will achieve production capacity plans for 7,300 tank containers, 2,200 refrigerated containers, and 620 quick-freezing equipment. Judging from the current demand for downstream tank containers and refrigeration equipment and the company's current marketing system, we believe that the production capacity of the company's fund-raising projects will be fully absorbed by the market. All of the new projects are expected to increase annual sales revenue of 678.97 million yuan and net profit of 86.07 million yuan after delivery. Profit forecast and valuation We expect the company's net profit for 2017-2019 to be 1.69 million yuan, 2.28 million yuan, and 249 million yuan respectively, corresponding EPS of 0.81, 1.09, and 1.18 yuan, respectively, and corresponding PE of 34.5, 25.6, and 23.5 times, respectively. The company's tank container business is growing rapidly in the context of the recovery of the downstream industry. Based on the promotion of fund-raising projects and the increase in unit product prices, the company's tank container business is expected to exceed expectations in the future; the refrigeration equipment business will achieve steady growth in a market environment where new snack foods are being rolled out on a large scale. Covered for the first time and given an “gain” rating.