Incident: The company released its 2017 annual report. For the full year of 2017, the company achieved total revenue of 184 million yuan, an increase of 57.98%; net profit to mother was 347.427 million yuan, an increase of 37.63% over the previous year. At the same time, a profit distribution plan was announced, and a cash dividend of 0.80 yuan (tax included) will be distributed for every 10 shares. At the same time, the 2018 quarterly report was released. From January to January 2018, we achieved revenue of 183 million yuan, an increase of 591.55% over the previous year; net profit to mother was 155.243 million yuan, an increase of 183.53% over the previous year. Comment: Gross margin declined in 2017, and operating cash flow improved significantly: the company achieved gross profit margin of 48.44% in 2017, down 7.13% year on year; achieved net profit margin of 18.93%, down 2.79% year on year. The net cash flow from the company's annual operating activities was RMB 21.395 million, up 50.39% year on year, mainly due to the company's EPC project, which saw a significant change in operating cash flow; net cash flow from investment activities was RMB 3.2552 million, down 97.55% year on year, mainly due to the company's purchase of new office buildings in 2016; net cash flow from financing activities was RMB 116.39 million, down 85.83% from the same period last year, mainly due to the company's listing and financing in 2017, while repaying 90 million bank loans. Leveraging the advantages of garden design, developing general engineering contracting services, and promoting high performance growth: The company's two major business segments, garden design services and engineering general contracting services, achieved good results in 2017. Specifically, in 2017, the company used the opportunity to enter the capital market to continue to consolidate the company's dominant position in the landscape design industry. The annual garden design business achieved revenue of 142.2488 million yuan, accounting for 77.49%, an increase of 22.42% over the previous year, and a gross profit margin of 55.16%. In addition, the company actively expanded the EPC business area, and undertook projects such as the Boao Dagong National Park Phase I Project General Contract (EPC), the Boao Corridor Landscape Enhancement Project General Contract (EPC), and the Boao Binhai Avenue Greening and Upgrading Project (EPC), achieving revenue of 41.3216 million yuan, accounting for 22.51% and a gross profit margin of 25.3%. Major contracts have been signed one after another, and it is expected that future order delivery will gradually accelerate: since the company went public in May 2017, it has successively signed a series of engineering contracts such as Huizhou Tonghu Lake, Zibo Wenchang Lake, Gongyi Ecological Water System, Boao Dagong National Park, Yiluo River Ecological Water System, and Boao Binhai Avenue, with a total contract amount of 2,085 billion yuan. The company has successively signed major contracts, which will help the company develop new markets, enhance its ability to undertake business, continuously accumulate experience and increase market influence, and accelerate the execution of future project orders. In the future, the company will improve the company's nationwide business network through the form of a design branch, and use the company's brand advantages to break through geographical restrictions to achieve business expansion, while actively exploring the EPC business model and ecological environment protection business direction. The first quarter's performance increased sharply year on year, laying the foundation for high annual growth: the company achieved revenue of 183 million yuan in the first quarter of 2018, an increase of 591.55% year on year; net profit to mother was 15.524 million yuan, an increase of 183.53% year on year. Among them, in the first quarter of 2018, the company continued to vigorously carry out EPC projects, achieving revenue of 148 million yuan, accounting for 80.63%. Financial forecasting and valuation: The company's net profit is expected to be raised from RMB 0.40/0.60/85 million yuan in 2017-2019 to RMB 0.85/1.50/252 million yuan in 2018-2020, an increase of 144.8%/76.8%/67.4% year-on-year, corresponding EPS of 0.66/1.17/1.97 yuan. The current stock price corresponding to the 2018-2020 PE is 52.2/29.5/17.6 times, raised to a “Highly Recommended” rating. Risk warning: New business development and implementation falls short of expectations, repayment risks, etc.