The performance was in line with expectations, and the performance of Gold Shipping 2Q increased significantly. The company released its semi-annual report. Revenue for the first half of the year was 100 million yuan, up 84.7% year on year; net profit was 102 million yuan, up 389.6% year on year; EPS was the source. The significant increase in performance is due to the commencement and disclosure of shipping in April and the completion of performance commitments. On a quarterly basis, revenue was 574 million yuan, up 168.5% year on year; net profit was 93.9 million yuan, up 543.6% year on year. The Haitian defense industry is growing strongly, and the upgrading of traditional industries has accelerated its entry into the field of military auxiliary ships. Through the acquisition of Jin Haiyun, which successfully transformed the Tianhai defense industry, Jin Haiyun's customers are military and civil service departments, have second-level military confidentiality qualifications and complete four certificates. Various products are exempt from state disclosure and exclusive production qualifications, filling the domestic gap. According to the announcement, planned orders of 360 million yuan have been signed in 2016, accounting for about 95% of predicted revenue. Order delivery has been accelerated since the second quarter. Since the second quarter, Haitian Defense Industry's revenue is 187 million yuan, accounting for 22.2% of the main revenue, but gross margin is as high as 59.3%, driving us an 11 percentage point increase in overall gross margin over the first quarter. Judging, due to the company's sufficient orders in 2016 and 2017, the release of various special equipment and the finalization of new products in the future, it is a probable event that the company's performance exceeded expectations. Traditional business. Due to accelerated industrial restructuring and smog control efforts, Shanghai encouraged oil companies to accelerate “oil to gas”. At the same time, the company also entered the LNG fueling business, which led to a 219% year-on-year increase in natural gas business; the shipbuilding industry continued to be sluggish, leading to a sharp drop in ship EPC business by 33.7%. Through industrial transformation and upgrading, traditional ship design and general contracting capabilities have entered the military auxiliary ship field, forming a maritime defense equipment industry chain that balances the sky and underwater. Future performance is expected to grow rapidly. Build the first integrated military and civilian industrial park in China and accelerate the implementation of Tianhai's military defense industry strategy. On June 28, it was announced that an agreement was signed with the Taizhou High-tech Industrial Park Management Committee to establish the Tianhai Defense Civil-Military Integration Science and Technology Industrial Park Company, with a planned investment of 15-20 billion yuan, an investment of not less than 1 billion yuan by the end of 17. The construction period is expected. After completion, it will become the first military and civilian integration demonstration industrial park in China, and will introduce and cultivate military and civilian enterprises that meet the technical requirements of the military industry to form an industrial chain that meets the defense needs of the entire military. The park has functional areas such as military defense technology research institutes, military defense equipment testing centers, logistics centers, supporting industrial manufacturing areas, assembly equipment manufacturing areas, and security centers. Using its own military industry qualifications and market technology advantages and subsidiaries, the company will collaborate and reinforce various aspects of the equipment industry chain in the future, such as scientific research, design, inspection and manufacturing, to promote the acceleration of large-scale military special equipment and the mechanical and electrical defense industry. Investment suggestions: We expect net profit of 220 million yuan, 304 million yuan, and 407 million yuan from 2016 to 2018, to be 0.58 yuan, 0.80 yuan, and 1.07 yuan. Through acquisitions, we have successfully entered the military special equipment field, set up an industrial park to speed up implementation of the military defense industry strategy, and maintain the buy-A rating. The target price for 6 months is 34.61 yuan. Risk warning: Macroeconomic downturn, traditional business declines, and military business order delivery is progressing slowly