Incident Sifang Cold Chain released its 2017 annual report. It achieved annual revenue of 1,009 billion yuan, an increase of 49.26% over the previous year, and realized net profit of 172 million yuan, an increase of 38.36% over the previous year. The review performance slightly exceeded expectations. The cash dividend was 1.8 yuan for every ten shares. In 2017, the company achieved operating income of 1,009 billion yuan, an increase of 49.26% over the previous year; achieved gross profit of 333 million yuan, an increase of 54.17% over the previous year; realized a total profit of 199 million yuan, an increase of 38.10% over the previous year; and realized net profit attributable to shareholders of the parent company of 172 million yuan, an increase of 38.36% over the previous year. The company plans to distribute cash dividends of 1.80 yuan (tax included) to all shareholders for every 10 shares based on the total number of shares on the share registration date at the time of implementation of distribution in the future. It is estimated that a total cash dividend of 379.47,800 yuan will be distributed. The tank container and quick-freezing equipment business grew rapidly, and sales for major customers achieved breakthroughs and progress. In 2017, the company's tank container and freezing equipment business achieved operating income of 666 million yuan and 315 million yuan respectively, up 55.97% and 46.51% year on year, and achieved gross profit of 1.94 and 123 million yuan, up 68.70% and 51.85% year on year, accounting for 58.26% and 36.94% of the company's gross profit, respectively. During the reporting period, the company's refrigeration equipment business achieved sales breakthroughs in business development for major customers such as Yasui Co., Ltd. and Zhengda Group, while the tank container business accelerated the development of the domestic market and the Russian market. Thanks to factors such as the recovery of the international shipping industry, the promotion of the country's “Belt and Road”, and the strengthening of environmental protection, etc., the tank container business has maintained a steady growth trend, especially in the domestic market. Profit forecast We expect that in 2018-2020, the company will achieve operating income of 1,390 million, 18.14 and 2,240 million yuan, net profit attributable to the parent company of 2.37, 3.08 and 377 million yuan, and a total share capital of 211 million shares, corresponding to EPS 1.13, 1.47 and 1.80 yuan. On April 16, 2018, the stock price was 22.62 yuan, corresponding to a market value of 4.750 billion yuan. The 2017-2019 PE was about 27, 19, and 15 times, and the latest PB was 3.24 times, maintaining the company's buying rating. Risk warning: Policy implementation falls short of expectations, and market expansion of new products is slowing down.