Key investment points: In the first half of 2013, the company achieved operating income of 429 million yuan, a year-on-year increase of 33.85%; total profit of 806,613,400 yuan, a year-on-year increase of 126.56%; net profit attributable to listed companies was 66.779 million yuan, an increase of 132.28%; and EPS of 0.196 yuan. Report Summary: Net profit increased 132.28% year over year. The company achieved operating income of 429 million yuan, an increase of 33.85% over the previous year; net profit attributable to listed companies was 66.779 million yuan, an increase of 132.28% over the previous year. The sharp increase in net profit is mainly due to the increase in the gross margin of the three major products and the increase in the share of income from kitchen utensils with the highest gross margin. The KA system went beyond expectations. During the reporting period, the KA system progressed beyond expectations. Shanghai Shigeo Industrial Co., Ltd., a wholly-owned subsidiary of the company, has signed contracts with more than 1,300 stores. It is currently in the product delivery period, and the construction of a self-built sales logistics system has been completed. Store sales are its own sales channels, and while the company's sales side takes the initiative, it can also enhance brand awareness. The high-end glassware business has entered the offline commissioning stage. The company previously focused on low-end products, and in 2013, high-end glassware could be officially put into production. In the second half of the year, it could contribute to the company's performance, representing the initial results of the company's transformation, meeting the growth in domestic demand for high-end daily-use glassware, achieving import substitution, and establishing a leading position in China's daily-use glass products. Subscribed to Anhui Fengyang Rural Commercial Bank Co., Ltd. for 20 million shares. During the reporting period, the company used 20 million yuan of its own capital to subscribe for 20 million shares of Anhui Fengyang Rural Commercial Bank Co., Ltd., with a share ratio of 10%. The subscription amount has been paid. At present, the construction application has been approved and is currently in the preparation stage. This subscription can expand the company's investment channels, improve the efficiency of capital use, and enhance the company's profitability. Profit forecasting and valuation. The company's net profit for the 13-15 year is expected to be 186 million, 261 million, 360 million yuan, and EPS of 0.55, 0.77, and 1.06 yuan. Based on the closing price of 16.41 on August 25, the corresponding PE is 30, 21, and 15 times, maintaining the “buy” rating, and the target price is 20 yuan.