Leading wear-resistant and corrosion-resistant new materials for comprehensive domestic industrial equipment. Evergrande Hi-Tech is mainly engaged in the development of new wear-resistant and corrosion-resistant materials and technical engineering services such as wear-resistant, corrosion-resistant, and energy-saving technical engineering services for industrial system equipment. It is a leading enterprise in the R&D, production, sales and technical engineering services of new wear-resistant and corrosion-resistant materials for comprehensive industrial equipment in China. The company's revenue in 2015-2017 was 185 million yuan, 148 million yuan and 259 million yuan, respectively, up -27.20%, -20.29% and 75.59% year-on-year. Net profit attributable to mother during the same period was -664.5546 million yuan, 14.1216 million yuan, and 147.452 million yuan, respectively, up -1471.76%, 121.25% and 4.42% year-on-year. Cross-border acquisition of Internet companies to achieve parallel integration of two main businesses. In 2017, the company acquired two Internet marketing companies, Wuhan Feiyu and Changsha Jufeng, through epitaxial expansion. Its main business includes software distribution, promotion business, and Internet page advertising business. In the first three quarters of 2018, the company achieved operating income of 209 million yuan, a year-on-year increase of 43.67%, and attributable net profit of 23.3722 million yuan, an increase of 480.58% over the previous year. Wuhan Flying Tour promised not less than 30.9 million yuan, 40.2 million yuan, and 40.5 million yuan in 2017-2019, with a completion rate of 115.52% in 2017. Changsha Jufeng promised not less than 37.7 million yuan, 49 million yuan, and 49.5 million yuan in 2017-2019, with a completion rate of 107.25% in 2017. Internet marketing revenue in 2017 accounted for 46.10% of main revenue and contributed 64.09% to gross profit. Waste incineration boilers are leading in the level of anti-wear and corrosion resistance technology. The company is one of the few domestic enterprises that have mastered waste incinerator protection technology and is capable of large-scale construction. The company's current garbage furnace protection technology is an anti-corrosion technology (HCMT technology) developed for garbage stoves, biomass stoves, etc. after independent research and process design on the best welding system platform in the international welding field. Orders of more than 50 million yuan were obtained from January to November 2018, and the business volume grew rapidly. The company's current waste incinerator protection production capacity is 26,000 to 30,000 square meters, and later it plans to expand production to 45,000 square meters/year. The expanded production capacity can be used not only in the field of garbage furnace protection, but also in other fields of protection. The market for noise reduction engineering is developing rapidly. The market for noise reduction engineering is developing rapidly. The main operating entity of the company's acoustic noise reduction business is Hengsheng Acoustic Company. Its revenue for 2016 and 2017 was 20.38 million yuan and 27.1336 million yuan respectively. Benefiting from the official implementation of the “China Environmental Protection Tax Law” on January 1, 2018, and Hengsheng Xue obtained the “Environmental Protection Engineering Professional Contracting Level 2 Qualification”, the number of bids increased dramatically in 2018. The cumulative bid amount in January-November exceeded 70 million yuan. In the future, with the rigid demand of industrial enterprises for noise control, we judge that the company's business volume is expected to grow rapidly. Profit forecasting and valuation space. We expect the company's net profit attributable to shareholders of listed companies in 2018-2020 to be 42.7 million yuan, 12.43 million yuan, and 146.59 million yuan, respectively, and diluted EPS of 0.14 yuan, 0.39 yuan and 0.48 yuan, respectively. We gave the company 20-25 times PE in 2019, with a corresponding reasonable value range of 7.80-9.75 yuan. For the first time, coverage gave it a “superior to the market” rating. Risk warning. The risk of mergers and acquisitions, risk of brain loss, risk of impairment of goodwill, and risk of investment project returns falling short of expectations.