Key investment points: Performance increased by 50.51%, exceeding market expectations. Fubon Co., Ltd. released its 2016 semi-annual report. During the reporting period, it achieved operating income of 266.4089 million yuan, an increase of 52.31% over the previous year; realized net profit attributable to shareholders of listed companies was 43.5984 million yuan, an increase of 50.51% over the previous year. Achieved an EPS of 0.36 yuan, and the performance exceeded market expectations. Revenue from chemical fertilizer additives increased by 52.31%. The revenue of chemical fertilizer additives increased by 52.31% during the reporting period. Domestic business growth was steady, and the increase in revenue was mainly due to the increase in overseas sales revenue and the Dutch Novecare consolidated statement. Actively promote epitaxial development. The company used cash to purchase 15% of Holland Novochemb.V. Phase II shares in May 2016. By the end of the reporting period, the company had held a total of 70% of the shares in the aforementioned company. At the same time, in order to make better use of the capital market, seek strategically significant investment and merger targets for the company on a wider scale, accelerate the pace of extended development, and utilize the experience and resources of professional strategic partners, the company plans to establish the Fubon Kyushu Emerging Industries M&A Fund and the Hubei GaoInvestment Fubon Ecological and Environmental Protection Industry Investment Fund. New projects are constantly being promoted. The company's holding subsidiary Yannong Fubang's 100,000 tons/year round granular potash fertilizer project has completed preliminary work such as equipment installation, commissioning and trial production, and has begun production and operation. At the same time, the company continued to increase R&D investment and achieved certain results in research and development projects such as round granular potash fertilizer, plant nutritional additives, and slow-release fertilizer for waste water treatment. Continue to promote employee incentive programs. In order to enhance the enthusiasm and sense of responsibility of employees, after introducing a restricted stock incentive plan, the company once again introduced a stock value-added rights incentive plan for foreign employees, established a benefit-sharing and restraint mechanism between shareholders and employees, fully mobilized their enthusiasm and creativity, integrated their interests more closely with the company's long-term development, prevented the loss of talent, and achieved the sustainable development of the enterprise. Maintain the buy rating. We expect the company's 2016-2018 EPS to be 0.82 yuan, 0.99, and 1.20 yuan respectively. We are optimistic about the company's internal and external development, maintain the “increase in holdings” rating, and give the company 40 times PE in 16 years, corresponding to the company's target price of 32.8 yuan. Risk warning: downstream demand falls short of expectations; raw material prices fluctuate greatly; project launch progress falls short of expectations.