Investment highlights Jinming Precision released its 2016 semi-annual report: In the first half of 2016, the company achieved operating income of 174 million yuan, an increase of 0.80% over the previous year; realized net profit attributable to common shareholders of listed companies of 25.239 million yuan, an increase of 1.86% over the previous year, and the corresponding EPS was 0.1 yuan. The company achieved a steady increase in sales revenue, and on-hand orders progressed steadily. In the first half of 2016, the company achieved operating income of 174 million yuan, an increase of 0.80% over the previous year, and a comprehensive gross profit ratio of 36.36%, an increase of 0.05 percentage points over the previous year, mainly due to an increase in product sales. In 2013, the company signed the same combination of 102 ZM3B-1300Q three-layer co-extrusion high-efficiency blow molding machines. The total contract amount is RMB 99.45 million. The contract has entered into force, achieving a cumulative operating income of RMB 51.1623 million. The explosion of new energy lithium batteries has boosted the performance of subsidiaries. Yuandong Company is a manufacturer specializing in the manufacture of large-scale plastic machinery and complete packaging equipment. Currently, it has more than 200 sets of modern processing equipment, including imported large-scale high-precision instruments and equipment and CNC machining centers. In the first half of 2016, Far East achieved further growth in performance, with operating income of 41,31332 million yuan, an increase of 18.86% year on year; operating profit of 3.2 million yuan, an increase of 559.65% year on year. The increase in performance is mainly due to Jinming's large-scale transformation of equipment in the Far East since mergers and acquisitions in 2013, and production capacity has increased dramatically; the lithium battery industry has grown during the reporting period, driving the company's revenue to increase. Profit forecast and rating: The company enters the field of intelligent manufacturing, actively lays out the “big health” industry, expands the industry map, and has considerable future development. We expect the company's EPS in 16-18 to be 0.17/0.22/0.28 yuan respectively, giving it an “increase in holdings” rating. Risk warning: Large fluctuations in steel prices; market development for new products falls short of expectations.