On the evening of July 15, Chengdu Luqiao announced the revised results for the first half of the year: The company's net profit attributable to listed companies is expected to increase by 90-120% in the first half of 2013, a revised increase from the previous forecast of 40-70%. Reasons for the performance correction: In the first half of the year, construction of the company's major projects progressed smoothly, and municipal projects such as the Second Ring Road in Chengdu were completed centrally, and the company confirmed an increase in revenue; completed BT projects confirmed an increase in investment income and an increase in net profit during the reporting period. Our view: The scope of the increase in performance has exceeded market expectations, thanks to the centralized construction confirmation progress of key projects that have exceeded expectations; the Sichuan infrastructure market space is huge and sustainable, and the company's 13-year order acceptance can still grow from the 12-year peak; currently, public distribution has been approved by the Securities Regulatory Commission, and capital acquisition is expected to drive a new round of leapfrog development. The company's EPS for 2013 and 14 is expected to be 1.05 and 1.35 yuan (not considering additional dilution for the time being), giving it 12 times PE of the 13 years before dilution, with a target price of 12.5 yuan, maintaining an increase in holdings rating.