From January to June 2010, the company achieved operating income of 515 million yuan, a year-on-year increase of 28.07%; operating profit of 563.789 million yuan, an increase of 153.54%; net profit attributable to the parent company of 43.4541 million yuan, an increase of 76.23% over the previous year; and realized earnings per share of 0.10 yuan. Overview of the company's fundamentals: The company is transforming into the first listed financial company around the development strategy of “class finance as the lead, trade and real estate as the two wings”; its main subsidiaries include Xiangyi Financial Union, which holds 70% of the shares, Xiangyi Guarantee, 90% of the shares, and Yuantai Pawn, which holds 90% of the shares, and Yuantai Pawn, which holds 90% of the shares; in 2008, companies affected by the economic downturn revealed a lot of problem loans. Currently, the construction of risk control systems and the recovery of problematic loans is increasing; in February 2008, the company's private offering raised 1.5 billion yuan for leasing and leasing and guarantee business. The increase in commercial business revenue is the main reason for the company's revenue. Revenue from product sales in January-June 2010 was 394 million yuan, up 25.87% year on year. Revenue from trade business accounts for 77% of total revenue, and the increase in operating income is mainly due to the increase in commercial business revenue. The scale of the pawnbroking business has begun to expand, and future development can be expected. From January to June 2010, the company's pawnbroking business began to resume growth, although interest income fell 3.92% year on year to 27.13 million yuan. However, the size of corporate loans increased to 816 million yuan, an increase of 21.02% over the end of 2009. At the end of June 2010, the share of normal loans was 85.01%, up about 10.7 percentage points from the end of 2009, and the share of questionable loans fell to 14.86%. Asset impairment losses from January to June 2010 were -5996 million yuan, a sharp decrease of 105% over the same period last year. As the company continues to improve its pawnbroking risk control system, the gradual recovery of the future economy and the gradual improvement of the conditions of loan companies, the pawnbroking business is expected to re-enter the path of rapid growth after experiencing this sharp decline. Furthermore, the sharp expansion in the scale of bank loans in 2009 also affected the development of pawnbroking business. With bank loan policies being tightened in 2010, the business environment of pawnbroking business will improve somewhat. Profit forecast and rating: We forecast that the company's net profit attributable to the parent company in 2010-2012 was 89.58 million yuan, 82.45 million yuan and 90.19 million yuan respectively. The corresponding EPS was 0.20 yuan, 0.18 yuan and 0.20 yuan respectively. Based on the closing price of 10.83 yuan on August 30, the dynamic PE was 55 times, 60 times and 55 times respectively. The valuation was high, maintaining the company's “neutral” investment rating (see Table 1).