Invest in and control the Jiangsu Hazardous Waste Project Company. The company's vision is unique. On the 10th, the company announced that it plans to invest in and control Jiangsu Conspeil Renewable Resources Company through corporate capital increases targeting its own capital. Conspire is constructing a comprehensive waste bin utilization project in Jiulong Town, Taizhou City, Jiangsu Province, with a total investment of 62.99 million yuan. It plans to operate after applying for a hazardous waste business license (920,000 waste bars/year +1,000 tons/year). According to the announcement's feasibility report, after delivery, the average annual revenue of the project is 46 million yuan, with an average annual net profit of 12.3 million yuan, internal The yield is about 19%, and the economic benefits are good. The company has a steady pace of expansion, contributing to new performance growth points in the hazardous waste exhibition. Considering the uncertainty of project implementation time, the 19-21 profit forecast of EPS 1.44/1.91/2.20 is maintained for the time being, and the target price is 41.76-47.52 yuan/share, maintaining “buying”. The “Xiangshui Incident” promotes the accelerated release of demand for third-party disposal of hazardous waste. The epitaxial layout focuses on investing in Jiangsu Conspire through the capital increase method of the company that the company plans to target. After the capital increase, it holds a 51% share ratio of the target company, with an equity consideration of 30.14 million yuan. Conspire is constructing a comprehensive utilization project for waste bins in Jiulong Town, Taizhou City, Jiangsu Province, with a total investment of 62.99 million yuan. It is planned to apply for a hazardous waste business license (920,000 waste packages/year +1000 tons/year). Consider the recent “Xiangshui incident” for accelerated waste release: Depending on the environment In the 2017 Statistical Bulletin, waste production enterprises disposed of hazardous waste on their own accounted for 66%. Chemical safety supervision is expected to increase the penetration rate of third parties (the government and the park's stronger exemption claims outsource management to professional environmental protection enterprises). The company's external layout of the Jiangsu hazardous waste project highlights a unique perspective, which is expected to guarantee better economic efficiency in the hazardous waste boom. The pace of expansion is steady. In the future, there is a lot of leverage to acquire Blue Sky Environmental Technology shares, with the intention of joining hands with the Tianjin Academy of Environmental Sciences to further strengthen scientific research capabilities and expand project entry; the previous acquisition of Henan Kaishun carefully tested the hazardous waste disposal field, actively expanded the industrial chain while deeply cultivating the main business, and is now investing in holding hazardous waste project companies again, which is expected to gradually expand into the industrial hazardous waste sector using resource advantages in the industrial sector, generating new performance growth points. The company has sufficient capital ($180 million in cash on hand/$280 million in idle capital to purchase wealth management), the balance ratio in 2018 was only 18%, and there is plenty of room for future external storage and leverage. Operations grew steadily, and EPC increased the flexible operation sector (water treatment system operation and management+chemical sales and service) grew steadily (18 revenue growth rate of 13%, revenue accounting for 65% /81% of gross profit). Downstream customers mainly come from the petrochemical/automobile/steel/paper/civil sector. Customers are mainly large state-owned enterprises that have served for many years, and customer and project resources are high and stable. Downstream industry: Environmental relocation drives high growth in industrial water treatment in the steel sector, and steady growth in the automobile/civil sector. EPC project development accelerated in 2018. Big Single (the company undertakes about 270 million dollars, accounting for 18 percent of revenue), and aims to obtain operating orders from it in the future. Maintain the target price of 41.76-47.52 yuan/share, maintain the “buy” rating for the time being, maintain the 19-21 profit forecast of EPS 1.44/1.91/2.20, maintain the 19 average P/E22x, maintain the company's high share of operating business/abundant cash flow/outstanding growth, maintain the company's 29-33xp/E in '19, maintain the target price of 41.76-47.52 yuan/share, and maintain “buy”. Risk warning: The progress of the project falls short of expectations, and there is a risk that gross margin will decline.