Incidents: In the first half of the year, the company achieved operating income of 371.7432 million yuan, up 22.11% year on year; the company's net profit was 28.3552 million yuan, up 6.86% year on year, with earnings of 0.15 yuan per share. Comment: The expansion of the market in the non-beverage sector has led to continued steady growth in filling production lines. The company's bottling production line revenue for the first half of 2015 was 95,600 yuan, up 56.07% year on year, and gross margin fell 0.34 percentage points. Revenue from bottle blowing machines was 91.4447 million yuan, down 31.09% year on year, and gross margin fell 1.27 percentage points. Mainly because the filling lines provided by the company include bottle blowing machines, the total revenue of the two was 293.0404 million yuan, an increase of 12.72% over the previous year. The company's filling lines cover both beverage and non-beverage fields. The company continues to develop high-viscosity filling lines in non-beverage fields such as P&G and Blue Moon, and is expected to maintain steady growth in bottling line revenue in the future. The PET bottle supply chain model has led to an increase in processing costs. The PET bottle supply chain project is one of the company's fixed capital raising projects. The company's processing fee for the first half of the year was 21.8923 million yuan, an increase of 259.43% over the previous year, and gross margin decreased by 0.18 percentage points. The company's business growth was mainly due to revenue growth in Hefei and Xinjiang packaging companies. The company's Xinjiang branch achieved sales revenue of 8.3615 million yuan and net profit of 1.108,800 yuan in the first half of the year. The Xinjiang company was established in September 2011 and agreed to provide no less than 400 boxes of carbonated drinks for Jianlibao every year, with an estimated net profit of 8 million yuan. Profitability will gradually increase as the Hefei project gradually reaches production. The decline in exports of secondary packaging equipment has led to a decline in gross margin. In the first half of the year, the company's secondary packaging equipment achieved revenue of 56.3766 million yuan, an increase of 58.47% over the previous year, and gross margin decreased by 8.83 percentage points. The decline in gross margin of secondary packaging equipment is mainly due to the high gross margin of related equipment exported last year. Secondary equipment benefits from future increases in labor costs, and is in broad demand in the fields of beverages, beer, condiments, etc. With the gradual warming of overseas markets, the company's gross margin can be expected to remain stable. Earnings forecasts and ratings. We expect the 2012-2014 EPS to be 0.32 yuan, 0.43 yuan, and 0.51 yuan, respectively, and the PE corresponding to the closing price on August 7, 23 times, 17 times, and 15 times, respectively; we give it a “recommended-A” rating. Risk warning: Market competition has led to a decline in gross margin.