[Event] On August 10, 2016, the company released its 2016 semi-annual report. According to the published report, the company achieved operating income of 1,203 billion yuan in the first half of 2016, an increase of 13.50% over the previous year, and realized net profit attributable to shareholders of listed companies of 92 million yuan, an increase of 17.29% over the previous year. Based on the fact that the market prospects for mobile communication RF devices and precision light metal structural components for consumer electronics remain promising in 2016, the company is actively expanding the production capacity of mobile communication RF devices and precision light metal structural components for consumer electronics. We believe that the company's annual performance is expected to maintain rapid growth. The communication radio frequency business performed well in the first half of the year, and is expected to achieve 30% growth throughout the year. Benefiting from changes in procurement models for downstream customers Ericsson and Nokia, the company has achieved rapid expansion of communication and video services through fixed production expansion and cost control. In the first half of 2016, mobile communication radio frequency devices achieved revenue of 569 million yuan, a year-on-year increase of 66.2%, and gross margin increase of 2.30%. We expect the growth rate of the radio frequency communications business to grow by 30% throughout the year. The consumer electronics business is booming, and the transformation of the military industry and aerospace industry is firm. Benefiting from the popularity of downstream customers OPPO and Meizu phones, and the timely layout of future metal frames, consumer electronics structural components achieved revenue of 105 million in the first half of the year, an increase of 84.28% over the previous year, and a 3.53% increase in gross margin. The production capacity of the consumer electronics business will be further expanded, and we forecast that the business will achieve a compound growth of 65% over the next three years. Beijing Chiyilong focuses on the army's core equipment, and has four complete military products; Xi'an Xinghang mainly produces titanium alloy and aluminum alloy structural parts for domestic and foreign military and civil aircraft, and has signed strategic cooperation agreements with Shen Fei Civil Aircraft and Shen Fei International, and plans to set up a large-scale surface treatment plant in the Shenyang region. The company's strategic goals for future development are clear, and the will to transform is firm. Investment advice: We predict that the company's EPS from 2016 to 2018 will be 0.25 yuan, 0.34 yuan, and 0.4 yuan respectively, and give it an increase in holdings rating. Risk warning: the risk that gross margin will decline due to intense market competition; the risk that the prosperity of the communications industry will not meet expectations; the pace of development in new fields will fall short of expectations;