Summary of Investment

• The first three quarters have seen rapid revenue growth and excellent cost control;
• Non-public offering will be over, and the expected fixed-increase projects are confirmed;

Investment Rating

We`re optimistic about the company`s integrated competitive advantage in the field of equipment + services and the breakthrough in the downstream sanitation industry chain. In 2017-2018, the company is expected to achieve a net profit of returns attributable to parent company of RMB 268 and RMB 355mn, and an EPS of 0.98, and RMB 1.3, which are equivalent to the PE of 28 and 21 times. The rating of “Buy” is given. (Closing price as at 20 Nov 2017)