Incident: The company recently announced that it has signed a cooperation framework agreement with Shanghai Blower Factory to inject into the joint venture through physical or cash, and to initially agree on the total investment and share shares of the two companies. Meanwhile, the company has recently completed the acquisition of Shanghai Yunneng and will begin consolidated statements in June. Strong alliances with Shanghai Blower Factory to promote win-win cooperation in the product field: Shanghai Blower Factory is a wholly-owned subsidiary of Shanghai Electric, and Shanghai Electric is one of China's comprehensive equipment manufacturing groups. The leading industry focuses on the four major fields of efficient clean energy equipment, new energy and environmental protection equipment, industrial equipment, and modern services. The company signed a cooperation framework agreement with Shanghai Blower Factory and plans to establish a joint venture, which will give full play to the advantages of the two sides in the field of fans, blowers and compressors, and integrate resources in various fields such as technology, market, and production to achieve win-win cooperation. The acquisition of Shanghai Yunneng was completed, and the agricultural environmental protection industrial park was accelerated: Shanghai Yunneng is mainly engaged in the supply of complete equipment and technical services for energy and power projects such as waste heat and pressure utilization and biomass power generation, and has energy-saving and environmentally friendly boiler manufacturing capabilities and grade B design qualifications for the power industry (new energy power generation). Through the acquisition of Shanghai Yunneng, the company will supplement its energy-saving and environmentally friendly boiler manufacturing and engineering project turnkey capabilities on the basis of its superior product, high-efficiency steam turbines, thereby further enhancing the company's core technical advantages in the fields of waste heat and pressure utilization and biomass power generation. In addition, the Linyuan Technology 10MW biomass straw gasification power generation project controlled by the company was successfully connected to the grid in September 2017. In the future, the company will use this as a model to accelerate promotion using the agricultural environmental protection industrial park model to form a large-scale effect for clean development and utilization of biomass energy. The increase in the controlling shareholders' holdings and the announcement of the employee shareholding plan showed confidence in the company's future development: the company announced on February 1 that the controlling shareholder would increase their holdings by no less than 50 million within 6 months from February 2. In addition, the company has issued a draft employee shareholding plan. The maximum amount of capital raised is 38 million, which can be used to subscribe for sub-shares in the pooled trust plan. The maximum share limit of the trust plan is no more than 76 million, and priority shares and sub-shares are set according to a ratio of no more than 1:1. The increase in controlling shareholders' holdings and the announcement of employee shareholding plans demonstrate the company's management's confidence in the company's future development. Profit forecast and investment advice: We expect the company's net profit for 2018-2020 to be 288 million, 413 million, and 564 million, respectively, corresponding PE of 32 times, 23 times, and 17 times, respectively, maintaining a “buy” rating. Risk warning: The promotion of agricultural environmental protection industrial parks falls short of expectations