The company's net profit for the first half of '14 increased 500-550% year-on-year. The company released a performance forecast. Net profit attributable to shareholders of listed companies in the first half of '14 increased by 500% to 550% compared with the same period last year. Net profit for the first half of '13 was 5.5943 million yuan, and the net profit range for the first half of '14 was 27.9715 million yuan to 307.687 million yuan. We believe that due mainly to the gradual warming of the wind power industry, the company's gross margin increased by a certain margin compared to the first half of '13, and there is still room for future gross margin growth. The world's leading wind power components are benefiting from the gradual recovery of the wind power industry, and there are obvious signs of recovery in the wind power industry. In 2014, China's new wind power installed capacity is expected to reach 20 GW, a year-on-year growth rate of more than 20%. At the same time, the recent introduction of a benchmark electricity price for offshore wind power will further guarantee the profits of offshore wind power. Although offshore wind power accounts for little in the short term, offshore wind power has broken through the bottleneck of onshore wind power installations in the long run. As a leading global wind power casting company, the company will first benefit from the recovery and growth of the wind power industry. The company has obvious advantages in size and technology. The gross margin is highly flexible. The company has advantages in various aspects such as size, technology, and customers, has good cost control, and outstanding comprehensive strength. Currently, the company is the only company in the world that can mass-produce wind power castings of 3MW and above. As the share of casting sales for the company's fans of 3 MW and above increased, the product structure was optimized. At the same time, the company's output increased and fixed costs were further diluted, and gross margin had a lot of room to increase under stable sales prices. We estimate that the company's gross margin is expected to reach 25% or more for the full year of '14. At the same time, the company is expanding production capacity through technological reforms and acquisitions to further increase its market share and enhance its competitiveness and voice in the industry. Profit forecast and valuation We expect the company's 2014-2016 EPS to be 0.21 yuan, 0.34 yuan, and 0.43 yuan, respectively. The target price will be raised to 7 yuan, and the target price will be raised to 7 yuan, maintaining the “buy” rating. Risk warning: Risk of wind power industry recovery falling short of expectations; risk of capacity expansion falling short of expectations.