Event: The company announced its 2014 semi-annual report. In the first half of the year, the company achieved revenue of 316 million yuan, an increase of 22.44% over the previous year, and realized net profit attributable to shareholders of listed companies of 21.185 million, a year-on-year decline of 31.18%. Net profit after deduction was 1.85 million, an increase of 6.7% over the previous year. The company expects net profit growth in the first three quarters to be between -30%-0%. The company recently won the bid for the Longyan section of the Zhangzhou-Yong'an Expressway, with a bid amount of 85.74 million, accounting for 10.8% of 2013 revenue. The expressway business dragged down growth, and the non-highway business grew significantly: in the first half of the year, revenue from the highway informatization business was 178 million, a year-on-year decline of 3.39%, which dragged down performance growth. The company's business revenue in the first half of the year did not account for a high proportion of the year, generally less than 1/3. It is estimated that the high-speed company's business is still likely to achieve positive growth throughout the year. The company's non-highway informatization business increased significantly. Revenue from port shipping informatization business increased by 78.9%; revenue from urban intelligent transportation increased by 38.36%; and revenue from intelligent security business increased 437.38%. The additional issue was approved to help change the mode of growth: the company has been operating in the field of highway informatization for a long time and has accumulated a large number of projects and customer resources. Huadong Electronics has been operating in the field of port informatization for a long time, and has an absolute leading position in informatization in important coastal ports. The transformation of new growth methods surrounding the company's long-term accumulation of logistics infrastructure information resources is an important future business direction for the company. The company's additional distribution projects have been reviewed by the Development Review Committee. Additional distribution projects such as the company's “Port Logistics Software and Information Service Platform”, “Transportation Intelligent Information Service Platform”, and “Industrialization of Enterprise Network Communication Terminal Based on TD-LTE Technology” will be important opportunities for the company to change its growth mode. According to the requirements of the Ministry of Transport, we will strive to achieve a nationwide ETC network by the end of 2015, establish a national ETC network operation and management mechanism, and achieve 100% ETC coverage at main toll gates. Furthermore, in the future, the informatization construction of national and provincial highways is also an important factor driving the growth of the company's main business. Investment suggestions: The company's 2014-2016 EPS is expected to be 0.38, 0.46, and 0.56, respectively. Currently, the corresponding PE is 32, 27, and 22 times, respectively. The company faces opportunities for valuation increases and business expansion brought about by changes in growth patterns, and has been given an “increase in holdings” rating for the first time, with a target price of 15 yuan. Risk warning: New business development falls short of expectations.