Key investment points: The company's performance continued to grow high in the first half of the year. The company announced its semi-annual report, achieving operating income of 37.5871 million yuan, an increase of 106.28% over the previous year; and realized net profit attributable to shareholders of the parent company of 43.926,800 yuan, turning a loss into a profit over the previous year. The continuous expansion of UHV supply and the continuous expansion of UHV supply contributed mainly to the company's high performance growth in the first half of 2016. Furthermore, the company's export orders in the first half of the year were also quite full. In the first half of the year, the company mainly completed the supply of insulation for the three UHV lines “Mengxi - Tianjin South”, “Ximeng - Shandong”, and “Shanghai Temple - Shandong”. “Ximeng - Taizhou” and “Yuheng - Weifang”, which won the bid in the first half of the year, will contribute to the performance of the second half of the year. The company expects net profit of 62-70 million yuan for the first three quarters, or 259%-305.59% of the same period last year. Profitability increased markedly, and the company's profit margin increased markedly in the first half of the year. The overall gross margin for the first half of the year reached 36.74%. Among them, the gross margin of porcelain insulators increased 7.99 percentage points year-on-year, and reviewed insulators increased 7.2 percentage points. Mainly, the company's share of UHV products with high profit margins increased, which boosted the overall profit margin level. The results of the work to reduce costs and increase efficiency are further evident. The period fee rate for the first half of the year was 20.30%, down 2.04 percentage points from the first quarter, and a sharp drop of 18.97 percentage points from the same period last year. The company's net interest rate for the first half of the year was 12.05%. 2016 was the first time since the company went public that it exceeded the 10% net profit margin level. The UHV dividend continues to release the company's high flexibility in fighting smog and haze. The development of clean energy has become an important development plan for China. However, in recent years, the problem of abandonment of wind and light in new energy power generation in the western region has been serious, further forcing the acceleration of UHV construction and solving the problem of the consumption of new energy power generation in China. According to the State Grid plan, it is expected that a total of 13 UHV projects will be approved in 2016. It is expected that more than 5 porcelain insulator tenders will remain in the next 3-5 years, and UHV construction dividends will continue to be released. The company focuses on insulator products and has high performance elasticity in A-shares. The current total market value of 4.682 billion yuan and the stock price is also highly flexible. Maintaining the increase in holdings rating, we are optimistic about the development prospects of the UHV industry and the company's high prosperity during the “13th Five-Year Plan” period. Equity incentives reached the first unlocking period in November 2016, which is conducive to stimulating management enthusiasm for work and keeping profit forecasts and holding growth ratings unchanged.