Key investment points: In the first half of the year, the company achieved natural growth of 155 million kilowatt-hours, a year-on-year decrease of 15.76%; sold 367 million kilowatt-hours of electricity, an increase of 13.98% over the previous year; and sold 9.622,700 tons of tap water, an increase of 24.08% over the previous year. It achieved main business revenue of 309 million yuan, an increase of 26.45% year on year; net profit of 47.318 million yuan, an increase of 15.12% year on year. Future poor water will affect profitability. Due to poor water intake conditions in the Fujiang River in the first half of the year, the company's power generation capacity decreased and the proportion of electricity purchased increased. As a result, the gross margin of the electricity business fell by 23.71%, down 5.4 percentage points from the same period last year. Due to the standardization of the hotel's cost accounting model, the gross margin of the hotel business fell to 41.57%, and sales expenses were reduced by 50.04% year on year as a result. There is a sharp reversal of the illegal guarantee, and the company's compensation of 18.9 million yuan may have been determined in the first instance by Ming Lun's illegal guarantee, and the company has accumulated 117 million yuan in compensation. Currently, the second trial is currently being tried. It is expected that the final judgment of the second instance will be biased in favor of the first instance judgment. The reversal of 98.1 million asset impairment will greatly improve the company's performance. Maintaining performance forecasts, we expect the company's electricity sales price to rise further by about 0.02 yuan/kilowatt-hour in the second half of this year, and the gross margin of the electricity business will pick up. Regardless of the impact of illegal guarantee reversals, the performance forecast of 0.37 and 0.44 yuan per share was maintained for 2009 and 2010. The current TTM price-earnings ratio of the Shanghai and Shenzhen 300 was raised to 31.48 times. Under the current valuation level, we raised the company's valuation level. The reasonable price-earnings ratio for the second half of 2009 was 29-31 times, and the reasonable value range was 10.73 to 11.47 yuan/share. We give the company a “buy” investment rating.