Event: The company recently released its 19-year performance report. In '19, it achieved revenue of 650 million yuan, an increase of 66.49% over the previous year, and net profit of 9.54 million yuan, an increase of 57.23% over the previous year. Key investment points: Rapid growth in performance, in line with our expectations, the main reason for the rapid increase in the company's performance is that the company's projects under construction were put into operation one after another in 2019. At the same time, the number of orders in progress increased dramatically and were successfully implemented, and the company's operating efficiency continued to improve. The company's weighted average return on net assets in 2019 reached 11.58%, an increase of 3.23% over the previous year, and profitability increased significantly. Steadily expanding the market, the company's main business is sewage treatment operation and environmental engineering business. It entered the solid waste field in '18. Currently, its business is mainly distributed in Anhui Province and Shandong Province, and has gradually expanded to regions such as Henan and Hebei. At the same time, it acquired Anhui Fanhuang Construction Engineering Co., Ltd. in the first half of '19 and obtained first-class general contracting qualification for municipal public works construction and first-class general contracting for construction projects, greatly improving engineering qualification capabilities. As of the end of June 2019, the company had orders of 291 million yuan for unfinished projects, 1.21 times the company's project revenue in 2018, and uninvested franchise orders of 1.157 billion yuan, which is comparable to the size of the company's operating assets already put into operation. At the same time, since the second half of 2019, the company has also won nearly 700 million yuan for new engineering projects (including projects won by the consortium) and 564 million yuan for new investment and operation projects, leaving plenty of room for the company's future development. The proposed implementation of refinancing is expected to greatly enhance financial strength to guarantee the progress of the project. The company plans to issue no more than 49.39 million shares (including principal amount), no more than 30% of the company's total share capital before the current non-public offering, and raise no more than 55,000.00 million yuan (including issuance fees) for Huimin waste incineration projects, Tai'an water supply and drainage projects, and supplementary current assets. After the refinancing is completed, the company's net assets will increase 59% year-on-year from the current 938 million yuan to 1,488 million yuan. The capital strength will increase dramatically. At the same time, the balance ratio will drop to 49.09% from 60.51% at the end of the third quarter of '19, enhancing the sustainability of future business development. The “recommended” rating is not considered for the time being. The company is expected to achieve net profit of 125 million yuan and 151 million yuan respectively in 20-21, corresponding to the current stock price PE of 16 and 14 times, which is lower than the valuation of comparable companies, and the future market space in the field of sewage treatment and waste incineration is broad, and the company has great potential for development, so we give it a “recommended” rating. Risks indicate a decline in gross margin, market progress falls short of expectations, project progress falls short of expectations, and policy risks