Financially healthy, stable growth, and maintaining the “buy” rating company announced on the evening of the 12th to complete a fixed increase and raise 930 million yuan for the execution of the four ongoing projects, with a total investment of 2,565 billion yuan in fund-raising projects. In addition, on February 27, the company announced the 18-year performance report. The net profit growth rate of Huimu reached 34.70%, which is prominent among garden companies. Compared to other garden enterprises, the company's business structure is relatively healthy, and PPP accounts for a relatively small share. There was no announcement to sign a new PPP contract in '18, and the net interest rate has increased. We expect the company's EPS in 19/20 to be 0.82/1.01 yuan, and the corresponding target price range will be adjusted to 14.76-16.4 yuan, maintaining the “buy” rating. After completing the fixed increase, the ongoing project is expected to continue to successfully advance the company's non-public stock offering. It has issued 79.487 million shares at an issue price of 11.7 yuan/share, and raised 930 million yuan in capital. After deducting issuance fees, the actual net capital raised was 920 million yuan. The Wuxi Guolian Xinmei Investment Center, the Wuxi Cultural Tourism Phase I Industrial Investment Center, and Jiangsu Xinyangzi Shipbuilding Co., Ltd. split the allocation quota equally, and each institution received 26.496 million shares. The successful issuance of fixed increases will directly benefit the execution of ongoing projects and ease the financial pressure on the company. After the issuance is completed, we expect the debt ratio to fall below 55%, which is at a low level in the industry. According to the announcement, the company has actually invested 272 million yuan in the four projects to be used to raise capital, replacing the raised capital with pre-invested capital. We believe that with the participation of cultural tourism industry capital, there is a possibility of cooperation with the company in cultural tourism projects in the future. Revenue was basically the same in 2018, and net profit continued to grow at a high level. The company announced its 2018 performance report on the evening of February 27, achieving revenue of 2,312 billion yuan, YoY +0.37%, net profit of 383 million yuan, and YoY +34.73%. Previously, the company predicted a year-on-year growth rate of net profit of 20.37% to 46.07% in 2018. Actual 18-year results are in line with our and market expectations. The net profit growth rate far exceeds the revenue growth rate, and the net interest rate has increased. We believe there are two main reasons. First, through integration in the past two years, the original real estate and garden business has basically completed revenue confirmation, and the share of municipal garden revenue increased dramatically in 2018. Second, the mine restoration business is still in the early stages of development, and profitability is strong. The business adjustments are beginning to show results. The three major businesses went hand in hand and the company's performance maintained a relatively rapid growth rate for three consecutive years after the company went public (net profit from the mother in 16/17/18 YoY +89.30%/35.95%/34.70%). We think it is related to the company's more pragmatic philosophy. The scale and type of orders signed were controlled in a timely manner in '18, and the execution of in-hand orders was relatively smooth. The mine restoration project in Ju County, Shandong has innovated in terms of repayment, incorporating the balance between tailings revenue and arable land compensation as a source of repayment, which has greatly reduced the financial pressure on the government. The business model is expected to continue to be replicated. In terms of Muqu products, since the supply of products does not meet demand, the company continues to build new production capacity, improving overall profitability and cash flow. The fixed increase has been completed, the performance is highly certain, and the new shares have not yet been listed, maintaining the “buy” rating, and fine-tuning the profit forecast. We expect an EPS of 0.64/0.82/1.01 yuan in 18-20 (original value: 0.66/0.90/1.16). We have raised our gross margin forecast for the ecological restoration and restructuring business, and lowered our revenue growth forecast. Consistent with previous reports, the company's comparable industry is environmental engineering, with a 19-year average PE of 18.65X. We believe that the company's profit quality is high. The approval was granted 18-20X PE in '19, corresponding to the reasonable price range of 14.76-16.4 yuan, maintaining the “buy” rating. Risk warning: The development of the mine restoration business fell short of expectations, and the development of Muqu's business fell short of expectations.