Event: on November 13, the company issued a notice on participation in investing in harmonious Green Industry funds and related transactions. The company intends to invest in Yibin harmonious Green Industry Development Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "harmonious Green Industry Fund").

With the strong support of the controlling shareholders, the first new fund in the second phase has landed with a management scale of 7.5 billion, and is expected to contribute management fee income to the company this year. The harmonious Green Industry Fund was established in October 2022. As of the date of the announcement, the executive partner of the harmonious Green Industry Fund is Tibet Jinkun Venture Capital Management Co., Ltd. (referred to as "Tibet Jinkun"), and the original actual control of Tibet Jinkun is IDG partners Niu Kuiguang, Lin Dongliang and Wang Jingbo. After this announcement, Chengdu Harmony Shuangma Investment Co., Ltd., a first-class wholly-owned subsidiary of Sichuan Shuangma, plans to add 52 million yuan of registered capital to Jinkun, Tibet, with its own or self-raised funds, and become a shareholder holding 50% of Jinkun in Tibet. At the same time, Tibet Jinkun subscribed 225 million yuan to the harmonious Green Industry Fund as a general partner. Tibet Jinxu Venture Capital Management Co., Ltd., a first-class wholly-owned subsidiary of Sichuan Shuangma, plans to subscribe 775 million yuan to the harmonious Green Industry Fund as a limited partner. Tibet Jinhe Venture Capital Management Co., Ltd., a second-class subsidiary of Sichuan Shuangma, serves as a fund manager. At present, the actual subscription amount of the harmonious Green Industry Fund is 3.25 billion, the target subscription amount of the fund (management scale) is 7.5 billion yuan, and the management rate during the investment period is 2% of the amount subscribed by the partners. The partnership agreement will take effect from the date of signing by the relevant parties. It is expected that the management fee income will be contributed to the company during the year.

To help "China's intelligent manufacturing", the layout of investment in hard science and technology has been further developed. Harmonious Green Industry Fund focuses on industry-based integration of the global industrial chain and supply chain, and through the cluster effect to gather capital, technology, talent, information and other advantages, innovation to promote "Chinese intelligence". The Fund focuses on the core areas of growth certainty, large market space and industrial resources in industries such as intelligent manufacturing, semiconductors, clean energy and technology, consumption and services.

The landing speed of the new fund is expected to accelerate, the scale of the company's fund management is expected to expand, and the company's performance may be improved or more stable under the iteration of the new and old funds. We judge that as the first phase of the fund established by the company in 2017 has entered the withdrawal period, the landing speed of the new fund is expected to accelerate; with reference to the form and scale of the first phase of the fund (two funds, a total size of about 17.5 billion), we judge that the second fund of the company's second phase of the fund is expected to accelerate the landing, and the company's fund management scale is expected to expand. A number of projects in the first phase of the fund have been in the withdrawal period, and investment returns and performance rewards are being gradually realized. we believe that the establishment of the second phase of the fund can continue the management fee income of the company; at the same time, after the withdrawal of the first phase of the fund, the second phase of the fund investment project is also expected to enter a mature period, continue to contribute investment income and performance compensation for the company, new and old funds gradually achieve iteration to improve the stability of the company's performance.

Investment suggestion: considering that the landing of the company's new fund exceeds expectations, we raise the assumption of the company's management fee income in 2022. It is estimated that the company's net profit from 2022 to 2024 will be 1.327 billion yuan 20.04 trillion (the previous value is 1.289 million 20.193.066 billion yuan), with year-on-year growth rates of + 34.2%, 51.0% and 54.1%, respectively. The current share price is 14 × PE in 2022, maintaining a "buy" rating.

Risk hints: the historical stock price of the company fluctuates greatly; the investment return of the project is lower than expected; the raising and establishment time of the second fund of the second phase of the fund is not as expected; the cement business is not as good as expected.