Event: Baoxin Technology released its 2015 semi-annual report. In the first half of the year, the company achieved operating income of 261 million yuan, an increase of 44.25% over the previous year; net profit attributable to shareholders of listed companies was 31.57 million yuan, an increase of 2.1 times over the previous year, deducting non-net profit of 31.15 million yuan, an increase of 2.38 times over the previous year, and basic earnings per share of 0.11 yuan. Meanwhile, the company forecasts a net profit range of 4594-53.59 million yuan for January-September, an increase of 200%-250% over the previous year. Youzhi Technology contributed nearly 90% of profits, which was the main reason for the sharp increase in performance in the first half of the year. In the first half of this year, Youzhi Technology achieved a comprehensive merger. With the support of listed companies, Youzhi accelerated the regional and industry layout of its business, established offices in Beijing, Central China, Southwest China, and Northwest China, and further expanded its products from the existing power industry to the steel, cement, petroleum, chemical and other industries. At the same time, the country's increasingly stringent environmental policy also provides a good policy foundation for the rapid promotion of the company's products. In the first half of the year, the company achieved operating income of 65.278 million yuan (over 13 years) and net profit of 27.95 million yuan, or 57% of its gambling performance. The good performance of Youzhi Technology was the key to the company's impressive performance in the first half of the year. Looking at the whole year, the company's excess in gambling performance is a probable event. Revenue growth in the sheet metal manufacturing business was steady, but gross margin declined by 3.7%. In the first half of this year, the sheet metal parts manufacturing business of the company's parent company achieved revenue of 179 million yuan, an increase of 9.1% over the previous year. However, due to the downturn in the downstream industry, especially with the gradual loss of China's labor cost advantage and the intensification of industry competition, the company's sheet metal prices have declined markedly. As a result, the gross margin of various products has declined by 2-6 points, and the average gross margin of the manufacturing business has declined by 3.7%. Looking at the whole year, the company's traditional manufacturing business is still under great pressure. The company will increase the development and manufacture of complete equipment for electrode boilers and photovoltaic automation equipment, and it is expected that the manufacturing business will remain stable throughout the year. The performance of the Arpani project has not been released due to low progress expectations, and CGN is bound to break the core bottleneck, and the boiler modification business will release performance at an accelerated pace. In the first half of the year, the delivery progress of the Alpani coal-fired boiler renovation performance was low. As a result, there was no performance contribution in the first half of the year. The core obstacle was still the slow construction progress due to insufficient funding, which limited the progress of project delivery. In July of this year, Apani and CGN Energy signed a strategic cooperation agreement. The two sides agreed to carry out strategic cooperation in the transformation of urban coal-fired boilers. The latter will undertake project investment and operation, while Apani will be responsible for design, construction, and construction. This cooperation can be described as a strong alliance, which will greatly speed up the progress of the project. According to the situation of the projects under construction by Apani (3 completed, 3 under construction, and expected to start 5-7), it is estimated that it is expected to achieve a performance of about 80-100 million throughout the year. Maintain a “buy” rating. The company's 2015-2017 EPS is expected to be 0.53 yuan, 0.83, and 1.12 yuan respectively, and the current stock price corresponding to PE is 27.9 times 17.8 times and 13.2 times. Considering the company's endogenous growth and the huge potential for external growth, we believe that the company's reasonable PE in 2017 was 25-30 times, with a target range of 28.00-33.6 yuan to maintain purchases.