Summary of Investment

— Sunshine Group buys shares at a premium price and holds more shares to embody confidence;

— Air governance industry booms to catalyze the demands of governance;

— New progress is made in the non-electrical sector.

Investment Advice

With the implementation of air governance plan and stricter environmental supervision, the air governance industry booms significantly, which continues to benefit our company as a leading enterprise. Based on the above-mentioned information, we forecast that the net profits in 2017 and 2018 are RMB730 million and RMB 814 million, respectively; the EPS,

RMB0.68 and RMB0.76, respectively; equivalent to the P/E ratio23.6/21.2 in 2017 and 2018, we give a target price of RMB18.4 and the rating of “Accumulate”.