In the first half of 2016, the company achieved operating income, net profit attributable to shareholders of listed companies, net profit after deducting non-recurring profit and loss, net cash flow from operating activities, and EPS of 554 million, 629.193 million, 63.752 million, 488842 million yuan, and 0.176 yuan/share, respectively, up 2.48%, 38.94%, 50.87%, -10.95%, and 20.55%. Overseas sales increased by 3.83% to 115 million yuan. Prices of major raw materials operated at a low level, and overall gross margin increased 3.4 percentage points to 35.04% year on year. On the one hand, the company's non-public stock offering project has been implemented, and capital has been raised to optimize the capital structure and save financial expenses; on the other hand, the company's products and customer structure are continuously optimized and adjusted, quality is stable, delivery is guaranteed, and order conditions are good. At the same time, internal management is strengthened and costs are strictly controlled. It is estimated that the net profit attributable to shareholders of listed companies will change by 20%-50% from January to September 2016. 1) The company is the largest zipper manufacturer in China. It has a full production process, a complete zipper production line, a high degree of mechanization, and a flexible production base. Currently, there are more than 7,000 sets of advanced equipment of various types, a daily production capacity of 5 million pieces, and a complete variety of product categories. It can also provide semi-finished products such as sliders, tape, and packaging, etc., and has been ranked first in production and sales for a long time. 2) The company's marketing network is spread all over the world. The major provinces and cities in China all have sales offices or agents, and there are also five major production bases in Fujian, Shanghai, Tianjin, Chengdu and Guangdong to provide customers with fast and convenient supply services nearby; there are direct sales and agencies in many countries and regions in Europe, Latin America, the Far East, West Asia and Southeast Asia in textile and garment concentration areas, and initially established a “national layout, global penetration” marketing network. “SBS” products are exported to more than 70 countries and regions, and is the preferred partner for many well-known domestic and foreign brands. The majority shareholders of the company have accumulated abundant resources in the field of sports (basketball). At the same time, the release of institutional dividends has brought consumer market opportunities. The second main business has entered the sports and health industry, promoting the layout of related external projects. The company is actively exploring new consumption models, and expects further experiments in physical education and training, stadium operation, injury rehabilitation, sports brokerage, and event promotion. The company continues to optimize and upgrade products, has good order conditions, and has strengthened internal management and strictly controlled costs; it has achieved remarkable results in adjusting the customer structure and developing new markets. Along with the expansion and penetration of overseas markets and the development of deep cooperation with customers in key domestic regions, it is estimated that in 2016-18, the company will achieve net profit attributable to the parent company of 95.73 million, 115 million yuan, and 135 million yuan, respectively, an increase of 33.02%, 20.20%, and 17.25%, corresponding to EPS of 0.27, 0.32, and 0.38 yuan, respectively. The company has strong technical strength, and outstanding scale advantages and operating strength. Considering that overseas market development and application of high value-added products are progressing smoothly, referring to the 16 year PE range of relevant accessories companies, the company was given a valuation level slightly higher than the average. 55xPE in 2016, corresponding to the target price of 14.71 yuan, buying rating. Major uncertainties: fluctuations in raw material prices, exchange rate fluctuations, overseas recovery falling short of expectations, continued deterioration in domestic demand, etc.