Key investment points: The interim results are in line with expectations. Tianqiao Heavy Industries released an interim report that net profit attributable to owners of the parent company in the first half of 2016 was 36.2893 million yuan, up 234.60% from the same period last year; operating income was 423 million yuan, up 89.12% from the same period last year; and basic earnings per share was 0.04 yuan, up 33.33% from the same period last year. In 2016, the performance of the mid-year report increased significantly year on year, mainly due to the merger of Huaxin Electromechanical. In the first half of the year, Huaxin Electromechanical's main business revenue was 200 million yuan and net profit was 19.52449 million yuan. It is expected to complete the commitment of 67.6 million yuan throughout the year. Excluding the impact of Huaxin Mechatronics, the main business revenue of Tianqiao Hoisting's parent company was 223 million yuan, which was basically the same as the previous year. Net profit was 16.76 million yuan, an increase of 55% over the previous year, mainly due to steady growth in aluminum smelting equipment, growth in maintenance business, and tax rebate contributions. Benefiting from the decline in steel prices, the gross margin of aluminum smelting lifting equipment and wind power equipment has increased. The company released a three-quarter report forecast. Net profit attributable to shareholders of listed companies from January to September is expected to be 68.79 million yuan to 80.93 million yuan, an increase of 70%-100% over the previous year. We expect net profit for January-September to be around 80 million yuan, achieving net profit of 123 million yuan for the whole year, with strong performance certainty. The mechanical parking garage project was launched. Tianqiao Liheng, a holding subsidiary of the company, won the bid for the first three-dimensional parking garage, with a bid amount of 44.987 million yuan, a total of about 400 mechanical parking spaces, using the “intelligent multi-entrance circular tower three-dimensional garage” technology independently innovated by the joint venture Shenzhen Zhongkeliheng Garage Equipment Co., Ltd.; the winning project will help the company's subsidiary Tianqiao Liheng undertake subsequent three-dimensional parking projects in Zhuzhou. We expect next year to bring 100 million yuan in revenue and 30 million net profit to the subsidiary. In addition to the production of three-dimensional warehouse parts, it has contributed more than 15 million dollars in net profit to flyover lifting. Strategic transformation and layout of the NEV industry chain. After in-depth research and verification combined with its own advantages, the company clearly proposed the development of the new energy vehicle industry chain in the 2015 annual report and participated in Inbol. The company has successively investigated and demonstrated projects such as electric vehicle drivetrains, lithium-ion power batteries, photovoltaic power generation equipment, etc., and invested 60 million yuan to establish a lithium battery development fund to enter the lithium battery equipment field to seek diversified development opportunities and promote enterprise transformation and upgrading. Raise profit forecasts and maintain an increase in holdings rating. Due to the implementation of the company's three-dimensional garage project, we raised the company's 2016 and 2017 profit forecasts by 15%, 18% to 0.15 yuan/share and 0.20 yuan/share respectively. We expect the company's EPS in 2018 to be 0.23 yuan/share, corresponding to PE 42 times, 31 times, and 27 times, respectively, maintaining the “increase in holdings” rating.