This report is read as follows:

The company signed a cooperation framework agreement with CIC Zhongcai to introduce CIC Zhongcai as a strategic investor to cooperate in the construction and operation of agro-ecological industrial parks to promote the national promotion of the project to the substantive stage.

Main points of investment:

Conclusion: the introduction of strategic investors will not only help to raise sufficient funds and promote the construction and operation of the agro-ecological industrial park to the national stage; more importantly, it shows that the company's biomass gasification power generation technology and the business model of developing the industrial park have been recognized by the market, and the company is accelerating to leap from equipment manufacturers and integrators to project operators. Maintain the company's EPS of 0.44 and 0.72 in 2018-20, maintain the target price of 19.38 and increase the holding rating.

The introduction of strategic investors, raise sufficient funds, the project promotion into the substantive stage. In terms of ① project expansion capability: the successful operation of the Gaoyou Linyuan project provides a blueprint for the promotion of the industrial park. The company signed a framework agreement with CIC CIC to jointly build no more than 20 agro-ecological park projects in the three northeastern provinces and Hebei in the next three years. ② ownership structure: the projects are all controlled by CIC, and the company holds 15% of the shares. Raising the remaining funds from the public funds, especially the local government investment platform, can not only greatly reduce the financial pressure on the company, but also introduce local industrial funds to promote the construction and operation of the project. ③ profitability: the company promises that under the normal operating conditions of the agro-ecological industrial park, the annual profit per 10MW power generation scale is not less than 20 million yuan. In addition, the company can obtain equipment income from project construction.

Gradually complete the transformation of equipment vendors-> integrators-> operators, and introduce strategic investors to speed up the leapfrogging process.

① is deeply engaged in the manufacture of high-end fluid machinery, has rich experience in system integration services for renewable energy projects, and the successful commercial operation of Gaoyou Linyuan project has laid the foundation for the promotion of agro-ecological industrial park project; the signing of the agreement of ② shows that the company's biomass gasification, purification, high-efficiency steam turbine and power generation technology as well as the development of agro-ecological industrial park business model has been recognized by the market, and the company has accelerated its transformation to an operator.

Catalyst: agricultural eco-industrial park project landed.