Report summary: The company mainly provides engineering survey and geotechnical construction services for large-scale construction projects in the petrochemical industry and the new coal chemical industry. The service areas include: engineering survey (including surveying and mapping, survey, inspection (supervision)), geotechnical construction, engineering consulting and supervision, etc. The company has comprehensive engineering survey class A, surveying and mapping grade A, foundation and foundation engineering professional contracting level 1, geological disaster management engineering survey grade A, geological hazard risk assessment grade A qualifications, and has qualifications such as foundation engineering inspection, geographic information system engineering, engineering consulting, and engineering supervision. The company's Q1 revenue in 2016 was 32.83 million yuan, down 62% year on year; net profit was 5.3 million yuan, down 145% year on year; the sharp decline in revenue and net profit was mainly due to the sharp decline in international oil prices starting in July 2014, which seriously affected the upstream exploration business and geotechnical engineering business, and as oil prices bottomed out in February 2016, the company's business volume is expected to pick up. The company has a deep technical accumulation in the field of geotechnical engineering and survey business in the petrochemical industry, actively participated in and promoted the construction of industry standardization, and has always been committed to cutting-edge research on engineering survey technology, continuously introducing advanced equipment, and innovating technology and technology. Professional talent advantages are obvious, resources and brand advantages are outstanding. The company currently has 267 professional and technical personnel, accounting for about 63% of the total number of employees, 132 middle and senior technicians, accounting for 49.5% of the total number of technical personnel, and 51 people have various registered engineer qualifications in 84 countries. The company's predecessor, the Sinopec Group Survey and Design Institute, is the only professional survey unit directly under Sinopec Group. The brand has great influence and has 30 years of rich experience in the industry. Company profit forecasts and investment ratings. The company mainly provides engineering survey and geotechnical construction services for large-scale construction projects in the petrochemical industry and the new coal chemical industry. We are optimistic about the company's future new exploration in the main business industry chain. We expect the company's operating income for 2016-2018 to be 325 million yuan, 387 million yuan and 468 million yuan respectively, and net profit of 27 million yuan, 30 million yuan and 36 million yuan respectively. It is estimated that the company's 2016-2018 EPS will be 0.26/0.30/0.35 yuan, respectively, and the corresponding PE will be 147/132/113 times, respectively, giving the company a “recommended” rating.