[Event] On August 10, 2016, the company released its 2016 semi-annual report. According to the published report, the company achieved operating income of 1,203 billion yuan in the first half of 2016, an increase of 13.50% over the previous year, and achieved net profit attributable to shareholders of listed companies of 92 million yuan, an increase of 17.29% over the previous year. Based on the fact that the market prospects for mobile communication RF devices and consumer electronics precision light metal structural parts remained booming in 2016, the company is actively expanding production capacity for mobile communication RF devices and consumer electronics precision light metal structural parts. We believe that the company's annual performance is expected to maintain rapid growth. Communications RF business performed well in the first half of the year, and is expected to achieve 30% growth throughout the year. Benefiting from changes in procurement models of downstream customers Ericsson and Nokia, the company achieved rapid expansion of the communication and video business through fixed production expansion and cost control. In the first half of 2016, mobile communication RF devices achieved revenue of 569 million yuan, a year-on-year increase of 66.2%, and gross margin increased by 2.30%. We expect the growth rate of the communication RF business to grow by 30% throughout the year. The consumer electronics business is booming, and the transformation of the military industry and aerospace industry is firm. Benefiting from the popularity of OPPO and Meizu phones from downstream customers, as well as the timely layout of future metal frames, consumer electronics structural components achieved revenue of 105 million in the first half of the year, an increase of 84.28% over the previous year, and a 3.53% increase in gross margin. Production capacity in the consumer electronics business will expand further, and we anticipate 65% compound growth in the next three years. Beijing Chiyilong focuses on the Army's core equipment and has four complete military certificates; Xi'an Xinghang mainly produces titanium alloy and aluminum alloy structural parts for domestic and foreign military and civilian aircraft, and has signed strategic cooperation agreements with Shenfei Civil Aircraft and Shenfei International to establish large-scale surface treatment plants in the Shenyang region. The company's future development strategy goals are clear, and the will to transform is firm. Investment advice: We predict that the company's EPS from 2016 to 2018 will be 0.25 yuan, 0.34 yuan, and 0.4 yuan respectively, giving it an increase rating. Risk warning: the risk that gross margin will decline due to fierce market competition; the risk that the telecommunications industry's prosperity will fall short of expectations; the pace of development in new fields will fall short of expectations;