Incident: The holding subsidiary Aluminum Energy Qingxin plans to introduce a strategic investor, China Aluminum Environmental Protection and Energy Saving Group Co., Ltd., through capital increases and stock expansion. Qingxin Environment relinquishes the priority subscription rights for this capital increase. After completion, Qingxin Environmental's shareholding ratio will drop from 60% to 37%, and it will no longer have a controlling position and will not be included in the scope of the consolidated statement. This capital increase was completed, and the installed capacity of the BOT holding business was reduced by 3285 MW. In 2016, Qingxin won 60% of the shares in environmental protection assets such as desulfurization, denitrification, and dust removal in coal-fired generator sets of five companies affiliated with China Aluminum, China Alcoa Lanzhou, Shandong Huayu, Baotou Aluminum, Ma Liantai, and Liupanshan, corresponding to a total installed capacity of 3285 MW, which is equivalent to 17.7% of the total installed capacity of the company's current BOT projects. With the introduction of Chinalco Environmental Protection, it can be expected that the scale of operations will continue to expand. This capital increase will help Aluminum Energy Qingxin expand the comprehensive environmental protection service business of China Alcoa Group and the metallurgical industry in the future, and will help give full play to the resources and capital advantages of state-owned shareholders and the professional management and technical advantages of shareholders of private listed companies. Qingxin's shareholding ratio has declined, but growth in the scale of operations is expected to accelerate. Investment suggestion: The completion of this capital increase had almost no impact on 2018 performance. It only downgraded the 2019-2020 operating income by 10%/10.7% to 42.7/4.91 billion yuan, and the 19-20 EPS 3%/1.8% to 0.66/0.81 yuan, respectively. Considering the introduction of Chinalco Environmental Protection, production capacity expansion is expected to accelerate, maintain a target price-earnings ratio of 13 times that of the 2019 EPS, corresponding to the target price of 8.56 yuan, and maintain the “increase in holdings” rating. Risk warning: project progress, policy strength falls short of expectations, competition intensifies