Matters: The company released its 2017 semi-annual report: achieved revenue of 458 million yuan, a year-on-year increase of 47.19%, net profit of 73 million yuan, a year-on-year increase of 42.15%; and realized earnings per share of 0.22 yuan, an increase of 4.76% over the previous year. Released the main operating data for the second quarter of 2017: In Q2 2017, the amount of new projects signed by the company was 271 million yuan, an increase of 25.48% over the same period last year; no new strategic framework agreements were signed. The performance of the semi-annual report increased rapidly, and order execution accelerated to guarantee the annual performance: the company achieved revenue/net profit of 458 million yuan/73 million yuan respectively in 2017 H1, an increase of 47.19%/42.15%, and the performance achieved a high growth rate. Since the company went public in August 2016, it has raised sufficient capital, and order execution has accelerated since the first half of 2017. According to research information, the company's wetland restoration EPC project in Linhe District of Bayannur City and the underground pipe gallery project in Donga County, Shandong, etc. have all started, and the first half of the year has had a favorable carryover, so the performance growth rate is high. Furthermore, it is expected that the implementation of the company's Yinchuan Zoo project and Guangxi Bama Yao infrastructure and renovation projects will also be accelerated to ensure the company's high performance throughout the year. At the same time, due to the accelerated execution of the company's orders, the company's sales expenses and management expenses increased by 77.28%/45.58%, respectively, due to the increase in expenses such as bidding agency fees for the company's projects. There are sufficient orders in hand and sufficient capital for the project to issue convertible bonds: According to the company's semi-annual operating data, 271 million yuan of new projects were signed in Q2 in 2017, an increase of 25.48% over the same period last year; no new strategic framework agreement was signed. In 2017 H1, the company signed a new order of 1,288 million yuan, an increase of 376.21%; and signed 3 strategic framework agreements, with a total amount of 2.3 billion yuan. Our head office has announced order data since 2016. The company has signed new orders (including framework agreements) of 3.733 billion yuan since 2016, which is 7.3 times the company's 2016 operating income of 511 million yuan, including orders of 2.41 billion yuan and framework agreements of 3.733 billion yuan. The company has sufficient orders in hand, and order revenue is relatively high, guaranteeing rapid growth in the company's annual performance. In addition, the company announced on July 18 that the company's issuance of convertible corporate bonds was accepted by the Securities Regulatory Commission. The proposed capital raised for the current issuance of convertible bonds is 330 million yuan, mainly for the “Danbei Town Urbanization Infrastructure Construction and Ecological Environment Improvement Project” that the company won the bid in the July 10 announcement. The investment amount of the project is 700 million yuan. The company uses various financing channels to guarantee project funding. It is expected that the availability of convertible bond funding will accelerate the project implementation process. It plans to acquire Zhengzhou Water in cash to boost the water treatment sector: Since listing, the company has implemented a national cross-regional layout, and its business has spread across most provinces and cities across the country; in order to penetrate the aquatic ecological management market and integrate the ecological industry chain, the company announced in June 2017 that it plans to acquire 60% of the shares of Zhengzhou Water with its own capital of 252 million yuan. The acquisition is expected to complete the equity transfer and processing of industrial and commercial changes as soon as possible. Zhengzhou Water promised that the net profit achieved in 2017-2019 was not less than 40 million yuan, 47 million yuan, and 55.4 million yuan, respectively. The overall valuation of the target company was 420 million yuan, and the corresponding dynamic PE was 10.5 times, 8.9 times, and 7.6 times. The acquisition ratio was reasonable; and it also promised that the net operating cash flow for at least 2 years between 2017-2019 was positive. Zhengzhou Water is mainly engaged in the construction of water resources and hydropower projects. It has a high correlation with the company's main business, ecological and environmental protection engineering construction, which helps the company to achieve strategic development plans for the extension of the industrial chain. The integration of Zhengzhou Water into listed companies is conducive to speeding up the company's business development, thus cultivating new profit growth points. Investment suggestions: The company benefited from the accelerated implementation of orders in the first half of the year, and the company's semi-annual report performance was beautiful; there were sufficient orders in hand, and the annual performance was guaranteed. In addition, the company plans to acquire Zhengzhou Water to expand its business to the water treatment sector, and is expected to achieve synergies. We are optimistic about the company's future growth. We expect the company's revenue growth rates in 2017-2019 to be 92.9%, 56.2%, and 30.0%, respectively, and net profit growth rates of 109.4%, 53.1%, and 32.4% respectively; covering the investment rating of 109.4%, 53.1%, and 32.4%, respectively; for the first time, the investment rating granted to increase holdings -A is 20.25 yuan, equivalent to a dynamic price-earnings ratio of 45 times that of 2017. Risk warning: Project implementation process is slowing down, interest rates are rising, convertible bond issuance progress falls short of expectations, etc.