An order of 3.65 billion yuan was signed with the Taihai Group, significantly boosting its performance for the next three years. The company recently announced the announcement relating to the signing of a major contract in 2017. Taihai Group plans to purchase container forgings and other products from Yantai Taihai Nuclear Power, a first-level wholly-owned subsidiary of the company. The transaction consists of several sub-contracts, with an amount not exceeding 3.65 billion yuan. The contract is expected to execute the transaction until the end of 2020, and no related business occurred in 2016. This matter constitutes a related transaction. Taihai Group is the controlling shareholder of the company, holding a total of 43.1% of the company's total shares. It is an investment group focusing on equity investment and investment management. The investment fields involve investment in many domestic and foreign industries such as finance, agriculture, and logistics services. Yantai Taihai Nuclear Power is a first-level wholly-owned subsidiary of the company. Its main business is the production and sale of complete nuclear power plant equipment, large components, pumps, valves, impellers, etc. If this contract is successfully executed, the company expects to increase net profit by 200-600 million yuan every year, significantly enhancing the company's profitability. The nuclear power industry is in full swing. Domestic and foreign countries are watching the domestic side. According to the “13th Five-Year Plan”, China's nuclear power plant will have an installed capacity of 88 million KW in 2020, corresponding to about 32 units, with an average of about 10 units per year. The next 3 years will be a concentrated explosion period for nuclear power construction. If calculated at 15 billion yuan per unit, the total market space is about 500 billion yuan. Also, according to a report from the Reference News Network, China has officially begun developing offshore floating nuclear power plants, which will be put into operation as soon as 2019. It is expected that 20 offshore nuclear power plants will be built by 2020. Overseas, financial websites report that the industry expects the world to build 130 new nuclear power units by 2020 and 300 by 2030. Among them, the “Belt and Road” and neighboring countries will account for about 80% of the number of newly built units. China is striving to build about 30 overseas units in countries along the “Belt and Road” by 2030. The leading nuclear power equipment “nuclear, military, and civilian” company has a comprehensive layout. The company with huge room for future development is a domestic nuclear power plant main channel leader. It is the only domestic manufacturer that also has the capacity to manufacture pipelines for second-generation and third-generation nuclear power units. The market share of nuclear power pipelines has reached 50-60%. Since last year, it has received a total of 6 domestic orders for main pipelines. Furthermore, the company has extended its products to other nuclear power equipment fields, and has successfully developed products such as reactor internal components and evaporator forgings, and entered the high-end market. The company's current performance is growing rapidly. The three-quarter report revealed that net profit due to mother in 2017 is expected to be 10 to 1.05 billion yuan, an increase of 154.88% to 167.63% over the previous year. The company actively lays out new fields. In the post-nuclear power market, the company currently has the ability to manufacture and treat main equipment for nuclear power plant waste. Currently, it has reached an agreement of intent with a domestic nuclear power engineering institute, and the nuclear power aftermarket has 100 billion dollars of space in the future. In the military field, the company participated in various national military projects. In the civil sector, the company supplies many large internationally renowned energy companies, including GE, Alstom, and Siemens of the United States. Profit forecast and investment rating: The net profit for 2017-2019 is expected to be RMB 1,044, 13.52, and RMB 1,647, respectively; EPS is 1.20, 1.56, and 1.90 yuan; the corresponding PE is 22, 17, and 14 times, giving it a “buy” rating! Risk warning: Nuclear power tenders fall short of expectations, and industry competition intensifies.