Guide to this report: The company is gradually transforming from equipment supplier -> integrated service provider -> project operator, and expanding the value chain to the downstream of the industrial chain. The future profit model will focus on system integration services and agroecological industrial park operations. Key investment points: Conclusion: The company is gradually transforming from equipment supplier -> integrated service provider -> project operator: on the one hand, the company's ability to obtain orders in high-end equipment manufacturing continues to increase, and can provide system integration services for renewable energy, distributed energy, etc.; on the other hand, the successful commercial operation of the Gaoyou Linyuan Project lays the foundation for future agroecological industrial park project promotion. The company's EPS in 2017-19 is expected to reach 0.24/0.44/0.67 yuan, respectively. For the first time, coverage will be given an increase rating, and the target price is 19.4 yuan. Gasification technology has broken through barriers to commercialization, and biomass power generation is on the rise. ① According to the “13th Five-Year Plan” of biomass energy, 2,800 megawatts of biomass power generation will be added in 2017-20, with an investment of nearly 300 billion yuan; ② Compared with traditional direct combustion power generation, Gaoyou Linyuan can reduce biomass consumption by 70-80%, reduce the storage radius from more than 200 km to about 100 km, and successfully commercialize the 10 MW project, laying the foundation for the future operation and expansion of agricultural ecological industrial parks; ③ The proposed acquisition of Shanghai Transportation has high-efficiency boiler production capacity and operating qualifications such as power plant design, etc., on the one hand There is great potential in the field of waste heat recovery. On the other hand, it collaborates with the company's biomass power generation project. Fluid machinery is flourishing, and EPC expansion is driving steam turbine orders. ① The company is a domestic leader in traditional fluid machinery such as blowers and compressors, and is expected to achieve steady growth, and high-end products are expected to achieve import substitution; ② The company has accumulated deep EPC project operations, and project orders continue to grow at a high rate, which is expected to drive rapid growth in the steam turbine business; ③ Compared with steam cycle power generation, the combined efficiency of gas and steam can reach 45% or more. The company is currently cooperating with ETI in the US to develop gas turbines, with R&D investment of more than 3%, and is expected to enter the distributed energy field in the future. Catalysts: Adachi Environmental Protection Industrial Park project implementation risk factors: Project order execution falls short of expectations, R&D progress falls short of expectations.