Summary of Investment

• Efforts will be made in the fourth quarter, and thus high result growth of the year can be
  expected
• The risk of acquisition falling short of expectations has basically been released;
• The management has held more shares, showing their confidence;

Investment Rating

In general, we are optimistic to the prospect of soil remediation market. Beijing GeoEnviron Engineering & Technology has strong overall strength in the soil remediation field, and at the same time, has accelerated its layouts in the dangerous wastes disposal and garbage burning fields, bringing sufficient momentum for continuous result growth. A few days ago, after the Company resumed trading by terminating its purchasing Shenzhen Shentou Environmental Technology Co, Ltd., the risk of falling short of expectations has been released to a large extent, and the controlling shareholders, supervisors and senior executives successively held more shares to show to the market their confidence in the longterm development of the company. We expect the company`s 2017-2018 net profit attributable to the parent company to reach RMB324million/RMB477million, respectively; the corresponding EPS to be RMB0.49/0.72 respectively; the corresponding PE to be 25.6/17.4 times, respectively; the given target price to be RMB18.00, rated Buy. (Closing price as at 8 Dec 2017)