Introduction to this report: The proposed acquisition of Kangbo Solid Waste into the booming hazardous waste treatment field will not only increase EPS, but also expand its business in depth to the booming Yangtze River Delta region, accelerate the company's development, and maintain its “gain” rating. Key investment points: Lower the previous profit forecast and maintain the “gain” rating. Affected by the lower than expected growth of traditional business, considering the company's order and release schedule, we lowered the company's 17-18 EPS to 0.25 (-28%) and 0.33 (-27%) yuan. If the restructuring is completed, the EPS exam preparation will be 0.42 yuan. We are optimistic about the company's restructuring. After completion, it will not only greatly enhance performance, but also further enhance the company's overall competitiveness. Maintain the target price of 17.47 yuan and maintain the “Overweight” rating. 10x PE acquired Kangbo Solid Waste to enter the hazardous waste sector, increasing EPS by 28% in 18 years. Kangbo Solid Waste, the target of this restructuring, was established in 2006. It is one of the largest single and mature incineration hazardous waste treatment companies in Jiangsu Province. It has 17 categories of qualifications and an annual disposal capacity of 38,000 tons. Kangbo Solid Waste promises that the deduction of non-net profit from 2017 to 2019 will not be less than 1.06, 1.06, or 113 million yuan, corresponding to a price-earnings ratio of only 10.14 times in 2018. After completing the restructuring, EPS of 0.42 yuan (not considering raising supporting capital) increased 28% (based on exam preparation results) compared to the unpurchased exam, which significantly increased profits. Hazardous waste treatment is booming, and further market expansion can be expected. In 2016, Jiangsu Province produced 3.383 million tons of hazardous waste, with an approved disposal capacity of 623,000 tons/year. The gap was 938,000 tons, and it is still expanding. It is worth looking forward to the company's future rapid expansion of the hazardous waste market and merger and acquisition projects in Jiangsu Province, the Yangtze River Delta, and the whole country with Kangbo Solid Waste's professional management team. Soil remediation orders are growing rapidly, and the strength of nationalization should not be underestimated. The company has been working in the field of heavy soil metals for many years and has sufficient technical reserves. The company's order amount for conservative soil restoration in 2017 was 270 million yuan, an increase of more than 50% over the previous year. The “Ten Rules for Soil” policy accelerates the release of the soil remediation market. The company's advantages in the industry are expected to be further demonstrated, and the national market can be expected to expand in the future. Risk warning: The growth rate of the atmospheric sector declined in 2018 and beyond; the expansion of soil remediation fell short of expectations.