Net profit for the first half of the year fell 14.3% year on year: in the first half of the year, the company achieved revenue of 2.99 billion yuan, a year-on-year increase of 61.6%, of which toll revenue was 460 million yuan, a year-on-year decrease of 0.4%, and Tanbai Expressway achieved toll revenue of 340 million yuan, an increase of 1.2% over the previous year; operating costs were 2.52 billion yuan, up 87.9% year on year, and gross margin fell 11.8 percentage points to 15.4%, mainly due to a sharp increase in the share of trade business revenue with low gross margin; net profit attributable to owners of the parent company was 160 million yuan, down 14.3% year on year; realized Thin earnings per share were $0.19. The decline in real estate business settlements is the main reason for the decline in the company's net profit: the company's business mainly includes toll roads, real estate, and logistics trade. The increase in revenue is mainly due to a sharp increase in logistics trade revenue. The logistics trade revenue increased by 117% year on year, and the increase in the company's revenue was all contributed by this business. The decline in real estate settlement revenue was the main factor leading to a year-on-year decline in the company's net profit. The company's real estate business revenue fell 56.7% year on year, gross profit decreased by 97 million yuan (a decrease of 58.3%), the gross profit of the logistics trade business increased by 53.55 million yuan (negative for the same period last year), and the gross profit of the toll road business increased slightly. The net profit of Tanbai Company increased 36.3% year on year: during the reporting period, Tanbai achieved operating income of 499 million yuan, up 36.3% year on year, of which toll revenue was 338 million yuan, up 1.2% year on year; realized net profit of 160 million yuan, an increase of 36.8% over the same period last year. Since last year, it has been affected by various policies, especially free small car tolls on major holidays, leading to a decline in profits for most companies in the industry. It is not easy for Tanbai to achieve rapid growth. The increase in profit is mainly due to improved operations and increased exchange earnings. Investment advice: Increase holdings - A investment rating, target price of 4.2 yuan for 6 months. We expect the company's diluted earnings per share from 2013 to 2015 to be 0.32 yuan, 0.41 yuan, and 0.49 yuan respectively. The current stock price corresponding to the dynamic price-earnings ratio of 2013 is 12.0 times, and the valuation is at the middle and high-end of the industry. The company's diversified development is being implemented rapidly. It is expected that in the future, there will be multiple profit growth points in logistics, real estate, mining, etc.; maintaining the company's investment rating of 4.2 yuan for 6 months, equivalent to a dynamic price-earnings ratio of 13 times that of 2013. Risk warning: Real estate settlement for the second half of the year fell short of expectations; risks brought about by diversified development.