On the evening of March 13, the company announced that it achieved operating income of 413.6058 million yuan in 2018, an increase of 37.45% over the same period last year; net profit attributable to shareholders of listed companies was 8,00792 million yuan, an increase of 39.25% over the same period last year; and the company achieved earnings of 1.075 yuan per share, an increase of 23.45% over the same period last year. Based on the total share capital of 75,044,500 shares as of December 31, 2018, the company plans to distribute cash dividends of $3.30 (tax included) to all shareholders for every 10 shares, and a bonus of 3.5 shares for every 10 shares. Review the company's performance growth was in line with expectations, and profit distribution returned to shareholders, demonstrating confidence in the company's development. The company's performance continued to improve, with revenue of 4.1 billion yuan in 2018, an increase of 37.45% over the same period of the previous year; net profit of the mother of 80 million yuan, an increase of 39.25% over the same period last year, and total assets of 923 million yuan at the end of 2018, an increase of 16.27% over the previous year. It is proposed to distribute a cash dividend of 3.30 yuan (tax included) for every 10 shares to all shareholders, accounting for about 31% of the current net profit. At the same time, 3.5 bonus shares will be distributed for every 10 shares, and the total share capital will expand to about 101 million shares after the bonus shares are sent. Currently, the company's total share capital is 75 million shares. The scale is relatively small. Sending bonus shares will help enhance the liquidity of the company's stock and demonstrate the company's confidence in its own strength. The controller recently completed a plan to increase its holdings, and equity incentives are tied to core employees. As of February 26, all increases in the Chairman's holdings have been completed. The average price of the increase was 31.80 yuan/share, and the increase was 155.745 million yuan. The company has implemented a restricted stock registration number of 1,324,500 shares for incentives, requiring net profit growth of at least 20%, 40%, and 60% from '18 to 20 compared to '17, respectively. The interests of core employees are tied, and the motivation is sufficient. Excluding the cost amortization amount of the 18-year equity incentive plan of 13.4953 million yuan, the actual profit growth rate of the company will be about 63%. The benefits of downstream industrial customers have rebounded, driving steady growth in the company's performance. As one of the few domestic suppliers that have also provided various types of water treatment services to Baosteel, WISCO, Volkswagen and many other very large steel companies and automobile companies for more than ten years, the company has advanced technology and service experience. The Hegang Leting Water Treatment EPC project, with a total amount of 372 million yuan, had an obvious effect on increasing the company's performance. Coupled with the addition of new automobile and mass projects and civil business, the increase in investment and financial management and deposit income, and the receipt of IPO listing subsidies, contributed to steady growth in performance. Localized industrial water treatment business model, with on-site technology+low cost personnel+contract waste treatment, one-stop operation service to overcome competitors. Steel relocation and transformation projects have increased, and as a leader, it is expected to obtain more EPC projects through the “1+1" model. At a time when there is immediate demand in the industry and standards are being raised, market concentration will inevitably be concentrated on high-tech and leading enterprises. The company has a high gross margin, maintains an asset-light model, has abundant capital, plenty of room for additional leverage, and has strong growth momentum. The company's overall gross margin has remained above 40% for 15 years and beyond, and the balance ratio has remained below 20%, which is much lower than that of its peers. Adequate capital further guarantees sufficient impetus for the company's future endogenous and extended development. Profit forecast and rating: We fine-tune our 2018 net profit from 82 million yuan to 80 million yuan, keeping the 2019-2020 forecast unchanged. The estimated net profit for 2018-2020 is 0.80/1.24/161 million yuan, corresponding to PE 37/24/18 times, maintaining the “buy” rating. Risk warning: risk of loss of existing major customers, risk of new industrial water orders falling short of expectations, risk of increased industry competition