Incident 1: The company published its 2017 annual report on April 18, 2018. In 2017, the company achieved operating income of 2,221 billion yuan, an increase of 28.58% over the same period of the previous year; realized net profit attributable to shareholders of listed companies of 104 million yuan, an increase of 4.93% over the previous year; realized net profit after deducting non-profit of 97 million yuan, an increase of 17.38% over the previous year; and basic earnings per share of 0.12 yuan, an increase of 0.00% over the previous year. Incident 2: The company released its 2018 first quarter report on April 25, 2018. During the reporting period, the company achieved operating income of 592 million yuan, an increase of 17.44% over the same period of the previous year; realized net profit attributable to shareholders of listed companies of 27 million yuan, an increase of 50.60% over the previous year; realized net profit after deduction of 26 million yuan, an increase of 45.38% over the previous year; and basic earnings per share of 0.03 yuan, an increase of 50.00% over the previous year. On April 17, 2018, the company held the 22nd meeting of the third board of directors to deliberate and pass the “Proposal on the 2017 Profit Distribution Plan”. The company plans to distribute a cash dividend of 1.0 yuan (tax included) for every 10 shares based on the current share capital of 858,000,000 shares. The total amount of cash dividends distributed this time is 85,800,000.00 yuan, and the remaining undistributed profit of 539,898,956.80 yuan will be carried over to the next year's distribution. Comment: Profit growth has been achieved, and overseas geothermal projects continue to advance. The company published its 2017 annual report on April 18, 2018. In 2017, the company achieved operating income of 2,221 million yuan, an increase of 28.58% over the same period last year; net profit attributable to shareholders of listed companies was 104 million yuan, an increase of 4.93% over the previous year. The number of projects under construction at the end of 2017 increased by 1029.3726 million yuan compared to the beginning of the year, mainly due to the increase in geothermal development of SMGP, an Indonesian subsidiary of OTP, and the SGI project in Hungary. In 2018, the company will focus on the construction of the SMGP240 MW geothermal power plant in Indonesia. In addition to achieving the first 30 MW installation and commissioning, the company will ensure the completion of 50 to 100 MW of installation and commissioning within the year, establish a “one well, one station” geothermal power generation model in the geothermal industry, which is completely different from the traditional power generation model, set a new benchmark for geothermal power generation models, and further accelerate the development and construction of overseas geothermal projects, which is conducive to further improvement of the company's performance. Controlling core equipment, the original “one well, one stop” technology has been widely recognized. The company is mainly engaged in the R&D and manufacture of screw air compressors, screw expansion generators and screw compressors used in other fields, and the development of screw expansion generators in renewable energy fields such as overseas geothermal power generation markets. Since its establishment, the company has been engaged in R&D and manufacturing of air compressors. The technical level of screw air compressors is in the leading position in the industry. The manufacturing scale is number one in Asia and third in the world, and has been widely used in various industries; the company's screw expansion generators have core independent intellectual property rights and a leading technical level in the world, and meet the needs of energy gradient utilization and energy saving and emission reduction. In addition to being widely used in the field of domestic waste heat and waste pressure low grade energy recycling, the company has launched an original “one well, one station” The new technology path for geothermal power generation has been recognized by overseas geothermal power generation markets, and is vigorously developing overseas geothermal power generation application markets, and is already seeing results. In 2017, the company's overseas geothermal market development has not only seen initial results in the US, Hungary, and Indonesian geothermal power generation markets, but has also made real progress in the geothermal power generation markets in Kenya, Turkey and other countries. Focusing on strategic transformation goals, we actively carry out capital operations and explore overseas markets. The company's screw expansion power generation technology and equipment has core independent intellectual property rights, leading global technical level, and is in line with energy saving and emission reduction policy guidelines. In particular, the “one well, one station” geothermal power generation technology path based on screw expansion technology and equipment as the core key technology and equipment of distributed geothermal power plants has huge disruptive application potential in the field of geothermal power generation. The company has established a strategic transformation to the world's leading renewable energy operators and complete geothermal power generation equipment providers. On April 14, 2017, Whitegrass No. 1, LLC, a subsidiary of Open Mountain Energy, LLC (“OME Company”), the holding company announced by the company, signed a $600,000 “Asset Acquisition, Project Development, and Commission Agreement” with Homestretch Geothermal 2010, LLC. On July 28, 2017, the company announced that Star Peak Geothermal, LLC, a subsidiary of OME in the US, signed a “Asset Purchase, Project Development, and Commission Agreement” worth 3 million US dollars with PrescoEnergy, LLC. Using KS ORKA in Singapore and OME in the US as the main platforms for developing the global geothermal market, the company brought in senior overseas geothermal development professionals to form a geothermal market development professional team to actively explore the geothermal resource power generation market in Indonesia, Kenya, Turkey, the US and other countries and Europe. Currently, it has obtained the 240MW Sorik Marapi geothermal project in Indonesia and the 30MW Sokoria geothermal project, and Turawell Geothermal Power Company in Budapest, Hungary, 30MW (initial 2.7MW) geothermal power generation project. US Wabuska Geothermal Power Project and StarPeak Geothermal Project. Up to now, both the Turawell geothermal project in Hungary and the Wabuska geothermal project in the US have been installed, and the power plants have been built and put into operation for power generation, and are operating well. In 2017, the company's geothermal power generation market development team also engaged in developing geothermal power generation projects in many other countries and regions. The company adheres to the drive of innovation, and R&D investment continues to grow year by year. The company's R&D expenses in 2017 were 82.41 million yuan, an increase of 34.89% over 2016 R&D investment, accounting for 3.71% of the company's operating income, an increase of 0.18 percentage points in revenue, and the company's R&D investment in revenue maintained a trend of increasing year by year. The company attaches great importance to the management and protection of intellectual property rights. Up to now, it has 122 patents, of which 10 new patents were obtained in 2017, and 33 patents are being accepted. Profit forecast and ratings: We expect the company's operating revenue for 2018, 2019, and 2020 to be $3.647 billion, $5.459 billion, and $8.033 billion respectively, net profit of $249 million, $406 million, and $698 million respectively, and EPS of 0.29, 0.47, and 0.81 yuan respectively. The price-earnings ratio corresponding to the closing price on May 10 ($19.05) is 66, 40, and 23 times, respectively. We maintain the company's “buy” rating. Stock price catalysts: Indonesian project implementation; geothermal industry development exceeds expectations; “Belt and Road” policy alignment. Risk factors: 1. Investment implementation of overseas geothermal projects falls short of expectations; 2. Risk of loss of core technical personnel; 3. Increased financial costs