Investment Highlights: Announcements/News: The company released its 2016 semi-annual report. 16H1 achieved revenue of 631 million yuan, up 5.33% year on year; realized net profit of 219 million yuan, down 22.09% year on year; net operating cash flow was 434 million, up 26.87% year on year; semi-annual EPS was 0.15, weighted average ROE of 5.25%, a decrease of 1.99 percentage points year on year. The performance was in line with our expectations. The road products business has maintained steady growth. Facing a decline in economic growth in the first half of the year, the company's road production business maintained good growth. Looking at the road segment, the Hanyi Expressway 16H1 achieved revenue of 536 million, an increase of 3.28% over the previous year, and the revenue contribution reached 84.94%. As of the end of July, the traffic volume of the Hanyi Expressway was 16.9292 million vehicles, which continued to enjoy regional economic development dividends as the core channel in Hubei Province; the overall growth rate of the Dasui Expressway and the Huangxian Expressway was relatively fast due to the short construction time; among them, the Dasui Expressway achieved revenue of 16.97 million, an increase of 13.86% year on year. Income tax deferrals were confirmed in 2015, and the actual 16H1 net profit growth rate was 28.40%. 15H1 absorbed and merged with Beibei Expressway Company, resulting in income tax deferrals, resulting in an increase of 111 million dollars in net profit for the current period. After excluding this impact, 16H1's net profit to mother increased by 48.51 million year on year, up 28.40% year on year. Through partial repayment of bank loans, 16H1's financial expenses were 102 million, a year-on-year decrease of about 25.42 million. The financial expenses saved were the main factor in the company's semi-annual performance growth. The future is focused on continuous transformation and development. The company announced a fixed increase plan at the end of July. It plans to acquire 100% of the shares of the mobile/tablet ODM company Miki Smart by issuing shares and cash. We believe that there are two highlights of this acquisition: on the one hand, the transformation of high-speed enterprises in the past was mainly focused on the finance, real estate, photovoltaic, environmental protection and other industries. These industries are similar to highways, and the overall valuation level is not high, and the electronics industry that Chutian's acquisition is an “innovation” of rapid transformation; on the other hand, in the context of state-owned enterprise reform, Chutian Expressway's acquisition of innovative management holdings has already been approved by the Provincial State-owned Assets Administration Commission. Combined with the company's venture capital fund project layout, we expect the company to continue to transform in the future. Maintain profit forecasts and maintain increase in holdings. Considering Miki Smart's consolidated statement, we expect the company's overall net profit to be 430 million, 476 million, and 520 million yuan. The diluted EPS will be 0.25 yuan, 0.27 yuan, and 0.30 yuan, respectively. The corresponding PE is 22 times, 21 times, and 19 times, respectively, maintaining the purchase rating.