Guide to this report: The company is a leading special steel enterprise in China. Benefiting from supply-side reforms, the company's performance continues to grow. If the company successfully merges and acquires Suzhou Qingfeng, the company will become the dual main business of special steel and IDC, and the company's performance will improve dramatically. Investment points: First coverage, giving a “increase in holdings” rating. The company is a leading domestic special steel enterprise. We predict that the company's 2018-2020 EPS will be 0.57, 0.59, and 0.65 yuan respectively. Referring to comparable companies, the company is valued 19 times its PE in 2018, corresponding to the target price of 10.83 yuan, and a “increase in holdings” rating. Merger and acquisition of data centers to transform the dual main business of special steel and data centers. After two years of suspension of trading and restructuring, the company recently disclosed an announcement that it intends to issue shares and pay cash to purchase assets to acquire 100% of Suzhou Qingfeng's shares. If the mergers and acquisitions proceed smoothly, the company's business will be transformed from the special steel business to the dual main business of special steel and data centers, and the risk resistance and profitability of the company's assets will be greatly improved. The business strength of Suzhou Qingfeng Data Center is strong, and the company's performance is expected to exceed expectations. Suzhou Qingfeng is a holding company whose core asset is 51% of Global Switch's shares. Global Switch is a leading data center owner and operator in the Eurasian region. It has 11 data centers distributed in London, Paris, Singapore and other cities. In 2018-2020, Global Switch is expected to add 142,000 square meters of data centers with a power capacity of 156 MVA, up 41.69% and 42.05% respectively from the current level. Global Switch's leading position will be further enhanced, and the company's performance is expected to continue to be unleashed. The special steel business has strong profitability, and the company has excellent cost control. The company's special steel production capacity is 3.2 million tons per year. The main downstream products are in the automotive, shipbuilding and other industrial sectors. The company's gross profit per ton of steel in 2017 and the first half of 2018 was 621.7 and 917.7 yuan/ton respectively, with strong profitability. The company's expense ratio has been low in the industry for a long time, and the company's overall asset quality is excellent. Risk warning: acquisition progress falls short of expectations; macroeconomic downturn accelerates