Hilong Holdings announced that it has won the bid for offshore engineering services. The contract value is estimated to be 54.6 million US dollars, and the full amount is expected to be included in 19-year revenue. Considering the huge contract amount and low correlation with oil prices, we remain optimistic about the company's performance growth in 2019. We maintained our 18/19/20 stall earnings forecast of RMB 0.10/0.14/0.18. Affected by the weak market, we lowered our target price from HK$1.06 to HK$0.88, corresponding to a price-earnings ratio of 7.0 times in '18. The current price has room to rise by 18.9% from the target price, so we maintain our holdings growth rating. The contract amount is huge. Offshore engineering service orders are expected to commence operations in '19 and are fully included in revenue for '19. The contract amount is equivalent to 106% of the projected revenue of the offshore sector for the full year of '18 (RMB 330 million), accounting for 11.4% of the projected revenue for the full year of '18. Given Hilong's high share of the offshore engineering services market, we expect this contract to record a significant gross profit margin. Furthermore, Hilong announced that it had obtained a high-end coating business worth 173 million yuan with high gross profit, equivalent to 69% of the total revenue of the coatings sector in '17. The contract is expected to generate revenue in the second half of '18. We believe that Hilong's continued inflow of orders will strongly support the company's profit expansion. The correlation between low oil prices. The manufacture of drill pipes and related parts contributes 50% of Hilong's revenue. This portion of revenue comes from the oil company's stable operating expenses, which are not correlated with oil prices. Furthermore, the offshore project orders received by Hailong come from infrastructure construction in Belt and Road countries, and market demand continues to exist. Therefore, we expect Hilong's performance to be less sensitive to oil prices, and steady growth can be expected. Maintain an “increase holdings” rating. The company's performance grew steadily, and we maintained our 18/19/20 stall earnings per share forecast of RMB 0.10/0.14/0.18. Affected by the weak market, we lowered our target price from HK$1.06 to HK$0.88, corresponding to a price-earnings ratio of 7.0 times in '18. The current price has room to rise by 18.9% from the target price, and we maintain our holdings growth rating