The results for the first half of 2014 were in line with expectations. As of June 30, 2014, the company achieved revenue of 528 million yuan (HK$, same below), an increase of 12.3% over the previous year, operating profit of 67.79 million yuan, an increase of 19% over the previous year, net profit attributable to shareholders of the parent company of 53.09 million yuan, an increase of 36.8% over the previous year, and a basic profit of 0.06 yuan per share. The main reason for the increase in performance in the first half of the year was a sharp increase in the mold business on the basis that the injection molding business remained stable. The mold business increased by 31.5% year-on-year in the first half of the year, and gross margin declined slightly. Part of the mold revenue for the first half of the year was 230 million yuan, an increase of 31.5% over the previous year. The main reason is that customer sales in the automotive, mobile and wearable devices, medical equipment and electrical appliances industries all increased. The gross margin of the mold business in the first half of the year was 38.4%, down 8.1 percentage points from the same period last year. Mainly, precision mold adopted a concession strategy in the first half of the year to obtain more orders for injection molded components by reducing gross margin. As the large-scale automobile mold business is put into operation in the second half of the year, the gross margin of mold will pick up in the second half of the year. The injection molding component business remained stable in the first half of the year and is expected to grow significantly in the second half of the year. The injection molding component business revenue for the first half of the year was 298 million yuan, which remained stable over last year, with a slight increase of 0.9%. Furthermore, as the newly leased Suzhou plant will also begin production in the third quarter of this year, the capacity utilization rate of the injection molding business will increase from 55% in the first half of the year to 75%, and the precision molds provided in the first half of the year will begin mass production of components in the second half of the year. There are sufficient orders in hand, and the expansion of production capacity ensures future business growth. By the end of August 2014, the total number of mold orders the company has in hand has reached more than HK$500 million, and the injection molding order schedule has reached January next year. The overall order volume is sufficient. In terms of production capacity, a very large automobile mold shop and new production capacity in Suzhou will soon be put into operation. In addition, the company is also expanding its scale through mergers and acquisitions. Extensive mergers and acquisitions increase market share and expand customer networks. The acquisition of a German S&B company and the proposed acquisition of a domestic mold factory will benefit the company's future development in overseas markets, increase market share, and enhance profitability. Maintain the target price of HK$1.71 and continue to give a “buy” rating. Considering the saturation of the company's ongoing orders, the expansion of production capacity and the increase in utilization rate in the second half of the year, we maintained the company's 14-15 EPS of HK$0.19 and HK$0.25, with a target price of HK$1.71, and maintained a “buy” rating.