Event: The company announced an interim report. In the first half of 2016, the company achieved revenue of 928 million yuan, a year-on-year increase of 9.7%, net profit attributable to shareholders of listed companies of 82 million yuan, a year-on-year increase of 1%, a year-on-year increase of 23.6%, a year-on-year decline of 0.6 percentage points, a net profit margin of 8.9%, a year-on-year decline of 0.8 percentage points, and an EPS of 0.10 yuan. Performance is stable, the main mold business is developing rapidly, and there are plenty of orders for the company's main mold business. The first half of the year achieved revenue of 680 million yuan, an increase of 15.6% over the previous year. The stamping parts business achieved revenue of 210 million yuan in the first half of the year, down 16.4% from the previous year, due to factors such as changes in product structure, which had a negative impact on overall performance. By region, the company's competitive advantage in the domestic market is obvious. In the first half of the year, the company achieved revenue of 760 million yuan, an increase of 60.7% over the previous year; while the foreign business was affected by factors such as weak exports, the overseas business achieved revenue of 170 million yuan, down 55% from the previous year. During the reporting period, the company achieved a gross profit margin of 23.6%, down 0.6 percentage points from the previous year, so the profit growth rate was lower than the revenue growth rate. The period expense ratio was 13.8%, an increase of 0.27 percentage points over the same period last year. This was due to a sharp increase in financial expenses caused by interest expenses and premium amortization on the company's issuance of convertible corporate bonds. There are plenty of main business orders, and the diversified layout is worth expecting that the company signed a total of 638 million yuan in mold orders in the first half of the year, an increase of 44% over the previous year. Among them, the proportion of orders from NEV manufacturers continues to rise. Major customers include Tesla, Guoneng Auto, NIO, Hezhong Automobile, New Ocean, etc., and subsequent companies are expected to fully benefit from the rapid development of new energy vehicles. Furthermore, the company's interim report said that during the reporting period, the company continued to actively seek cooperation projects and explore diversified strategic layouts in high-tech fields and emerging industries such as aerospace, military, new energy, intelligent manufacturing, and high-end equipment manufacturing. We believe that the company has plenty of orders, the growth of its main business is guaranteed, and at the same time it continues to promote a diversified layout. Further progress is worth looking forward to in the future. With the purchase rating, the target price of 8.5 yuan for 6 months is based on molds, actively extending the industrial chain, and laying out emerging industries, the performance valuation is expected to both improve. It is estimated that the company's EPS from 2016 to 2018 will be 0.22 yuan, 0.30 yuan, and 0.40 yuan, respectively. The purchase rating is maintained. The target price for 6 months is 8.5 yuan, corresponding to 39 times PE in 2016. Risk warning: The number of new models launched on the market falls short of expectations, and overseas business expansion falls short of expectations.