Report summary: The performance of the interim report is stable, and drone volume is expected in the second half of the year: in the first half of the year, the company achieved operating income of 369 million yuan, an increase of 10.60% over the previous year, and realized net profit attributable to shareholders of listed companies of 018.7 million yuan, a decrease of 7.14% over the previous year; in terms of traditional main business, the company will further improve the management structure of the division, increase R&D efforts, optimize product structure, strictly control costs, and increase sales scale and overall profitability. In terms of emerging industries: Influenced by the rapid development of the consumer electronics industry, drone products have been rapidly upgraded and new ones have been continuously introduced, and investment in Manta Intelligent R&D continues to increase. With the launch of the S6 drone, performance growth can be expected. Acquired Manta Intelligence and entered the drone industry: In May 2015, the company increased its capital by 15 million yuan, held 51% of its shares, and entered the drone market. In January 2016, the company plans to raise no more than 472 million yuan in non-public shares, of which 274 million will be used for drone production and sales service system construction projects. Manta Smart is a rookie of domestic drones. Its products are mainly consumer-grade drones. It has signed a strategic cooperation agreement with Amazon. New differentiated products such as K3 and M5 will be shipped on a large scale, and the company's maximum production capacity can reach 100,000 units/month. The cost center has moved downward, and the consumer drone market has exploded first: as related technologies such as flight control, gimbals, and autonomous barriers in the drone industry gradually mature, and the domestic supporting industry chain gradually improves, cheap microcontrollers are expected to be used on a large scale to replace FPGAs for drones today and next year, drastically reducing drone costs, and consumer demand for drones is expected to explode. Constant growth consolidates the foundation, and the main business is driven by internal and external growth: the company's main business is to build a full range of optical technology products based on “smart lighting”, and the acquisition of Fushun Optoelectronics in 2015 forms a synergistic effect with the main business. In the environment of a major reshuffle in the LED industry, the company has effectively integrated resources, achieved business expansion of outdoor LED and display systems, and effectively increased the gross margin of the original products. It is expected that the main business will grow steadily in the future. Investment recommendations and ratings: The company's net profit for 2016-2018 is expected to be 96 million yuan, 124 million yuan and 175 million yuan, EPS is 0.24 yuan, 0.30 yuan and 0.43 yuan, and PE is 64 times, 51 times and 36 times, maintaining the “increase in holdings” rating. Risk warning: Drone sales volume fell short of expectations, and the prosperity of the LED industry declined further.