Business expansion in various fields. Revenue and profit increased by nearly 40% in 2018. The company disclosed its 2018 annual report. The company achieved revenue of 414 million yuan in 2018, an increase of 37% over the previous year; net profit of 80 million yuan, an increase of 39% over the previous year; net profit after deduction of 62 million yuan, an increase of 26% over the previous year. The increase in the company's revenue was mainly due to the addition of the Hegang Leting EPC project to industrial projects, the Ningbo Volkswagen and Nanjing Volkswagen projects, the Henan Tianchen project, and the increase in petrochemical-related business and the sales and installation of dosing equipment for civilian projects. The revenue of the steel industry has doubled. The company's water treatment business mainly covers civil use, petrochemicals, automobile manufacturing, iron and steel metallurgy, pulp and paper, etc. The revenue of the steel sector in 2018 was 82 million yuan, an increase of 113% over the previous year. The company's overall gross margin declined 4.1 percentage points in 2018. In 2018, the company's management expenses were 54 million yuan, an increase of 50% over the previous year, mainly due to confirmed equity incentive expenses of 13.5 million yuan. The company's cash flow from operating activities was negative 15.78 million yuan, a sharp drop from 56.72 million yuan in the same period last year. Mainly, business revenue growth led to an increase of 80.45 million yuan in accounts receivable and notes, and an increase of 42.2 million yuan in prepaid accounts for the commencement of the Hegang Letting EPC project. The company has benefited from increased demand for sewage treatment from industrial enterprises, from downstream customers, increased profit levels in the steel industry. Coupled with stricter environmental regulations, the release of sewage treatment orders from the steel industry. The company won the bid for Hegang's EPC project, with an order amount of 372 million yuan. The large order highlights the company's strength and is expected to become a new model for the company's performance growth. In addition, the company has received steady growth in orders and revenue in the petrochemical and automotive fields. Benefiting from the flexible release of industrial water treatment demand, it is estimated that the companies corresponding to EPS in 2019-2021 will be 1.44/1.77/2.08 yuan/share, respectively, and the current stock price corresponding to PE in 2019 is 27 times that of PE in 2019. In the context of high intensity and normalization of environmental protection inspections, as well as improved profits in the steel, chemical and other industries, industrial enterprises have increased their willingness to manage environmental protection, and the industrial water treatment market will usher in new opportunities. The company mainly operates industrial water treatment, covering various fields such as petrochemicals, steel, paper, automobiles, etc., and the company has expanded vigorously in the fields of steel and automobiles, leading to a steady increase in orders. We have given PE 30 times in '19, a reasonable value of 43.2 yuan/share, giving it a “buy” rating. Risk warning: There is a risk that future environmental inspections will weaken, cash flow will deteriorate due to rapid business development, and private equity investment will not be recovered.