Incident: As the lead party, the company formed a consortium with Yongqing Water Affairs and Xingda Construction to win the bid for a PPP project for the treatment of black and smelly water bodies and the construction of supporting facilities in Jiahe County, Hunan, with a proposed total investment of 1,869 billion yuan. The first large-scale PPP project was launched, demonstrating the comprehensive ability to receive orders. The proposed total investment amount of this project is 1.87 billion yuan. It is the largest single PPP project that the company has won the bid so far. It highlights the company's ability to obtain large-scale comprehensive orders, and also provides experience for the development of large-scale comprehensive projects in the future. The project is divided into 2 packages: 1) Jiahe black and smelly water treatment (100 million), urban rain and dirt diversion upgrading project (224 million), heavy metal pollution control in the Taojia River Basin (570 million), sponge city demonstration zone construction (375 million); 2) urban and rural sewage treatment plants and supporting pipeline network construction (599 million). Among these, water-related businesses such as black and smelly water treatment, sewage plants and pipelines are subcontracted to Yongqing Water Management. As the lead and main investor, Yongqing Environmental Protection will share the main benefits of the project. The social capital party, mainly Yongqing Environmental Protection, holds 90% of the shares in the project company, and as the leader and general contractor of this consortium, is responsible for the lead, investment and financing, overall design, and implementation of the project, so it enjoys the main project benefits of the project. At the same time, Yongqing Environmental Protection is also responsible for the 570 million yuan heavy metal pollution control project in the project package. While the group works collaboratively, it makes full use of the financing convenience and specialized division of labor advantages of listed platforms. The management of 570 million heavy metal pollution has once again established the company's leading position in regional soil restoration. The total length of the main stream of the Xiangjiang River is 856 kilometers, of which 670 kilometers are within Hunan Province. Heavy metal pollution in the Xiangjiang River Basin has been caused by industries such as smelting and mining. The “Xiangjiang River Basin Heavy Metal Pollution Control Implementation Plan” covers eight cities in the Xiangjiang River Basin: Changsha, Zhuzhou, Xiangtan, Hengyang, Chenzhou, Loudi, Yueyang, and Yongzhou. It plans 927 treatment projects from 2011 to 2020, with a total investment of 59.5 billion yuan. The 570 million yuan heavy metal pollution control project for the Taojia River Basin that the company won the bid for this time is located in Chenzhou. It is a soil restoration project in Hunan that the company won the bid again after Lianggou in Shaoyang City, Zhubu Port in Xiangtan City, and Wangcheng District in Changsha. It is also the largest single unit up to now, fully demonstrating the company's leading position in the region in Hunan. Maintain the “buy” rating: maintain the forecast of the company's net profit for the year 17-19, which is 154 million, 379 million yuan, and 517 million yuan respectively, corresponding to EPS of 0.24, 0.50, and 0.68 yuan (considering fixed increases and dilution in '18 and 19), and maintain the “buy” rating, with a target price of 15 yuan. Risk warning: The subsequent development progress of hazardous waste is lower than expected, and the execution of PPP orders is lower than expected.