The business plan was successfully implemented, and the machining revenue growth company was doing well. According to the 2016 semi-annual report, in the first half of 2016, under the severe overall situation in the foundry industry, the company's revenue was 201 million yuan, down 4.93% year on year, and net profit to mother was 27.4776 million yuan, up 0.16% year on year. The company's main products are large-scale steel castings for power generation equipment, construction machinery and rail transit. The company is actively expanding the industrial chain, benefiting from the “Belt and Road” national strategic infrastructure construction, and machining revenue growth. Enjoy the high growth dividends of the rail transit market, and join hands with GE to absorb bogie production capacity. China's rail transit market space is huge, and the “13th Five-Year Plan” is actively building a comprehensive rail transit system. The operating mileage of national railways will be adjusted to 150,000 kilometers in 2020 and 175,000 kilometers in 2025. Urban rail received a continuous investment of 3.11 trillion yuan last year. There will still be strong demand for steel castings in the rail transit industry, and will maintain a relatively rapid growth rate. The company will seize the development opportunities of the rail transit market and actively lay out the rail transit steel casting market. The 2015 annual report shows that the company signed a long-term supply agreement for rail transit products with GE Group of the United States, which will effectively absorb the additional rail transit bogie production capacity. The focus is on laying out steel castings for high-end equipment to help manufacture in China 2025 “Made in China 2025” proposes to focus on developing innovative high-end equipment projects. Many industries in high-end manufacturing require steel castings as basic parts. The company follows the “13th Five-Year Plan” product structure optimization direction and continuously enhances the advantages of the company's major equipment core castings through process innovation and technology introduction. The company's 2016 semi-annual report states that in the next three years, the company will determine and implement GET heavy duty truck drive electric wheel core castings, TS Class H gas generator sets, CDC key core castings, manned light rail bogie development, and project development for ultra-high critical cast steel containing cobalt-boron elements. Investment advice: Buy-A investment rating, target price of 35 yuan for 6 months. We expect the company's EPS from 2016 to 2018 to be 0.27, 0.41, and 0.44, respectively. For the first time, a buy-A investment rating is given, and the target price for 6 months is 35 yuan.