In 2017, the company achieved operating income of 2,469.8083 million yuan, a year-on-year increase of 104.10%; net profit attributable to shareholders of listed companies was 1013.97797 million yuan, an increase of 158.45% over the previous year. In the first quarter of 2018, the company achieved revenue of 464.618 million yuan, an increase of 7.61% year on year; net profit to mother was 183.7883 million yuan, an increase of 13.67% year on year. The nuclear power industry led to high performance growth. The company's performance growth in 2017 was mainly driven by the nuclear power industry, which achieved a shift from relatively single-material R&D and production to high-end equipment manufacturing. The total revenue was 1853.439 million yuan, an increase of 143.43% over the previous year. Among them, the revenue of the first circuit of the reactor was 569.4274 million yuan, an increase of 268% over the previous year; container equipment and forgings mainly include reactor pressure vessels, evaporators, voltage regulators, reactor components and main pump components. In 2017, development successfully achieved revenue of 79.854 million yuan, accounting for 32% of the performance. Driven by high-end products in the nuclear power industry, the company's gross margin increased by 10 pcts to 67.93%, while the cost ratio fell by nearly 6 pcts to 12.91% during the period, leading to high growth in the company's performance last year. Accounts receivable and inventory turnover rates have declined. Due to the increase in procurement payments and tax payments, the net cash flow from operating activities declined significantly, changing from positive to negative. The diversified layout of nuclear power lays the foundation for growth The company's nuclear power field covers everything from fuel components at the front end of nuclear power plants to nuclear power equipment for later nuclear waste treatment, forming a product chain from nuclear power pipelines, key equipment for nuclear island main equipment to spent fuel storage and transportation containers. In the field of main pipelines, the company is the absolute leader. Since the second half of 2016, tenders for nuclear power lines began one after another. The company has successively won bids for Ningde Unit 5-6, Zhangzhou Unit 1-2, and Changjiang Unit 3-4, and also signed a contract for the supply of 4 main lines with a subsidiary of France's Manour Industrial Group. In 2017, the domestic nuclear power first circuit main channel bid winning rate reached 57%. At the same time, the company actively lays out high-end fields such as small reactors, nuclear power post-processing, and fourth-generation nuclear power technology, and strives to achieve complete nuclear power equipment, modular small reactor equipment, and nuclear waste post-treatment equipment manufacturing. As the three-door unit participates in electricity market transactions, it is expected that the nuclear power approval process will resume. At that time, the company's engineering progress will accelerate, and the number of orders will also increase dramatically. In addition to nuclear power products, the company also actively lays out forging products in the fields of petrochemical, thermal power, hydropower, offshore, metallurgy, etc., to achieve diversified development. Investment recommendations We expect the company's net profit for 2018/19/20 to be 11.54/13.87/1,530 billion yuan, and EPS of 1.33/1.60/1.76 yuan, giving it a “buy” rating.