Key investment matters: On May 13, 2017, the company issued an announcement agreeing to acquire Doosan Hydro Technology LLC. 100% of the shares held by Doosan Heavy Industries US Holdings for $7.3627 million. Ping An's view: Introducing leading international technology to enhance core competitiveness: DHT is an American medium-sized company, specialized in providing zero-emission engineering design, technical services and membrane technology, equipment and equipment, and equipment assembly and automation solutions for seawater desalination, municipal sewage treatment, water plants and oil fields. It has strong seawater desalination technical capabilities, and leading technical capabilities in other fields. It has won various international awards and honors many times, and can customize different treatment processes according to different customer needs. Overseas mergers and acquisitions are the company's unwavering development strategy. Previously, it has successfully acquired high-quality overseas targets such as KWI in Austria, ITN in Germany, and AquaSwiss in Switzerland, which have absorbed many of the world's top technologies and greatly reduced project engineering and operating costs. The company's current acquisition of DHT is expected to continue to introduce advanced international environmental technology and technical personnel, strengthen technical reserves, further consolidate the world's leading technical advantages, and promote the development of various businesses, especially seawater desalination business. Leveraging synergies and improving overseas market layout: DHT has rich engineering experience, more than 200 design projects in 25 countries, covering municipal and industrial fields; has a global business network, and has good markets in the mainland of the United States, Southeast Asia, South America, the Middle East and Africa; and has good long-term cooperative relationships with international EPC general contractors and engineering companies. Through the acquisition of DHT and its rich experience in overseas mergers and acquisitions, the company can give full play to the synergies between the two sides in terms of products, management, talent, market channels and technology, expand the US and other overseas markets, improve the global market layout, and achieve accelerated expansion. Profit forecast and valuation: It is predicted that the company's main business revenue in 2017-2019 will be 19.2 billion yuan, 25.2 billion yuan and 3.1 billion yuan respectively; earnings per share will be 0.65, 0.9, and 1.11 yuan respectively. The company was given a target price of 22 yuan for 12 months to maintain the “Highly Recommended” rating. Risk warning: The implementation of the company's project fell short of expectations.