Report Summary: Domestic aviation products are in line with expectations, and foreign trade business continues to grow. In the first half of 2015, the company achieved a total operating income of 901.1297 million yuan, an increase of 1.17%; realized operating profit of 37,7399 million yuan, an increase of 17.04%; and net profit attributable to listed shareholders was 22.2084 million yuan, a decrease of 1.03%. Among them, domestic trade aviation and derivatives achieved revenue of 18,56665 million yuan, an increase of 6.8%; gross profit margin of 36.78%, an increase of 7.68 percentage points over the same period of the previous year; foreign trade product revenue of 610.2994 million yuan, an increase of 7.72%. Due to factors such as product price reductions and rising labor costs, gross margin fell by 6.43 percentage points, causing foreign trade business to fall slightly below expectations; in terms of industrial goods, revenue was 86.8383 million yuan, a decrease of 32.72%, and gross margin increased by 3.67 percentage points over the same period last year, mainly due to civilian products. It's for production The expansion in the situation of surplus capacity has led to a significant decline in the civilian goods business due to the increase in domestic and foreign trade business revenue and the reduction in surplus production capacity. The scale effect of the Chinese aviation industry on the Kazakh axis is leading the growth of domestic aviation business. The increase in revenue and profit of domestic aviation products is mainly due to the significant increase in the performance of China Airlines Kazakhstan, a holding subsidiary of the company, in the past two years. Sales revenue, profit, etc. have all shown a relatively good growth trend. Currently, their level of growth and profitability are higher than those of the company's other domestic trade aviation and derivatives products. This aspect is due to the fact that after China Aviation Industry's Kazakh axis successfully completed the relocation of the new plant area, production management was improved, and the scale effect became apparent. Add new production and processing equipment to expand production and processing capacity. In the first half of the year, the company completed 42.05% of the annual business plan, of which foreign trade aviation completed 39.68% of the annual plan, and domestic trade aviation completed 39.68% of the annual plan. While actively accepting orders, the company continuously improved production and processing qualifications and capabilities. In the first half of the year, it invested 180 million yuan to increase equipment by 284 units (sets), upgrade 2 items of equipment, and implement 19 construction and security projects. These investment projects will further enhance the company's machining capabilities. Investment rating: We predict that the company will achieve earnings of 0.26, 0.38, and 0.55 yuan per share from 2015 to 2017, respectively. Considering the expectations of special policy support for the aero engine sector, it was given an “increase in holdings” rating. Risk warning: Aero engine projects fall short of expectations, slow increase in production and processing capacity, etc.