Ice equipment leading enterprises, cold chain logistics drive compressor opportunities. The company's business takes compressor as the core industry, and is a high-tech enterprise integrating R & D, design, manufacture, sales, engineering installation and after-sales service of waste heat recovery power generation, new energy, industrial and commercial refrigeration and its complete sets of refrigeration systems. The company's products focus on ice-making equipment, compressor products and system applications, as well as fuel cell air supply systems, which are widely used in power, chemical, infrastructure, cold chain logistics, new energy vehicles and other fields. At present, the company has a stable market share of ice-making equipment and maintains a leading position in the industry; compressors have two major international brands SRM and Refcomp, and under the background of national policy support for energy conservation and environmental protection, and the development of cold chain logistics industry, the company is expected to maintain rapid growth of revenue and share through brand influence.

Participate in Canadian HYGS to accelerate the strategic layout of fuel cells. In the field of hydrogen energy, the company is mainly engaged in fuel cell air supply system, and currently has products such as air compressor, hydrogen circulation pump and fuel cell engine. In addition, the company also grasps the core technology of AUTOROTOR hydrogen fuel cell twin-screw air circulation system. The products are used in light rail, bus, passenger cars and other vehicles and distributed energy fields. According to the announcement, in 2017, the company joined the Canadian Hydrogenics company to cooperate in the development of hydrogen fuel cell buses and logistics vehicles, and built supporting hydrogen filling stations to create fuel cell business performance growth points.

Policy subsidies promote the hydrogen energy industry, and there is a broad space for fuel cell development. Hydrogen energy has obvious advantages over other energy sources in terms of power and environmental protection, and the development trend of hydrogen energy industry is improving under the promotion of national policies. In each link, the fuel cell is expected to develop rapidly through transportation. Global fuel cell vehicle sales in 2018 were 5177, up 14 per cent from a year earlier, while domestic fuel cell vehicle sales were 1527, up 20 per cent from a year earlier, according to the China Automobile Association. According to CSC, hydrogen fuel cell vehicles are expected to formally implement the "Ten cities and Thousand vehicles" promotion plan in 2019, or provide financial subsidies to demonstrate and promote hydrogen fuel cell vehicles. As the leader in the layout of the whole industry chain, the company is expected to be the first to benefit.

Investment suggestion: the company has a stable position as the leader of domestic refrigeration equipment, and the layout of hydrogen energy industry chain is comprehensive. With the recent local policy catalysis of fuel cell plate prosperity, the company is expected to achieve rapid development. We expect the company's revenue to grow by 35.2%, 25.6% and 26.2% from 2018 to 2020, and net profit to grow by 130.6%, 135.2% and 75.6%, respectively. For the first time, it is given an investment rating of-A, with a 6-month target price of 9.07 yuan.

Risk hint: competition in the industry intensifies and fuel cell policy promotion falls short of expectations