Key investment matters: Rainbow Co., Ltd. released its interim results report on August 26. Operating income for the first half of 2015 was 172 million yuan (211.06% YoY); net profit attributable to owners of the parent company was -157 million yuan; basic earnings per share was -0.213 yuan, lower than market expectations. Ping An's view: 1H15 performance falls short of expectations: According to the interim report published by Rainbow Co., Ltd., the company's 1H15 performance fell short of market expectations. The company achieved a steady increase in revenue in the first half of the year, while net profit attributable to the owners of the parent company suffered a large loss. The main reason for the sharp decline in net profit was that the company continued to invest in unfinished projects and invested more in the G8.5 generation line. In the future, with the gradual consolidation of the company's G5 and 6 generation lines, production capacity is expected to be further released. The G8.5 generation line is awaiting implementation: Since this year, while exhibiting the G5 and 6 generation lines, the company has actively built the G8.5 generation line, and invested 315.3 million yuan in June to build a glass post-processing production line for G8.5 generation LCD substrates. Since there are currently no G8.5 generation substrate glass manufacturers in China, market demand for this product in mainland China has exploded in recent years. As a leading domestic LCD substrate glass company, the company will face a broad localized replacement market for panel raw materials. Once the G8.5 generation line is officially put into operation by the end of the year, the company's performance can be expected to improve. Investment Strategy: We expect the company's 2015-2016 revenue to reach 558 million yuan and 1,005 billion yuan, up 250.0% and 80.0% from the previous year. The corresponding EPS is 0.03 yuan and 0.14 yuan respectively, and the corresponding PE is 462 times and 97 times, maintaining the company's “recommended” rating. Risk warning: Group reform risks, production line construction falling short of expectations, replacement of new technology, etc.