Investment suggestions: The company released its 2013 semi-annual report. In the first half of the year, it achieved operating income of 748 million yuan, up 32.19% year on year; net profit attributable to the parent company was 31.97 million, up 45.32% year on year. The company adheres to the “ODM+EMS” business model and has major customers such as Samsung, Lenovo, ZTE, and Huawei. Stable cooperation with major customers has ensured the steady growth of the company's performance. The company's 2013-2014 EPS is estimated to be 0.51 yuan and 0.67 yuan, corresponding to the current stock price PE of 32.8 times and 25.1 times, giving the company a “recommended” investment rating. Key point: Revenue and net profit are growing rapidly. In the first half of the year, we achieved revenue of 748 million yuan, up 32.19% year on year. Net profit attributable to the parent company was 31.97 million, up 45.32% year on year. The company enhances R&D capabilities, expands downstream markets, actively prepares for the launch of 4G networks, optimizes resource allocation, and enhances competitiveness. The company expects net profit to increase by 10%-45% in January-September. The gross margin remained stable. The company's business has developed steadily, and its gross margin and net margin have remained stable. The company's consolidated gross margin for the first half of the year was 10.10%, down 1.76 percentage points from the previous year. The net profit margin was 4.27%. The year-on-year increase was 0.39 percentage points. The main reason is that the fee rate for the first half of the year was 5.29%, down 0.73 percentage points from the previous year. Major customer orders support business growth. In the first half of the year, revenue from network communication products in the company's main business was 592 million yuan, up 29.21% year on year, and gross profit margin was 8.26%, down 2.22 percentage points year on year. Revenue from portable consumer electronics products was 106 million yuan, up 47.71% year on year, and gross profit margin was 16.84%, down 1.03 percentage points year on year. The company deepened cooperation with core major customers. In the first half of the year, the company won the bid for ZTE EPON and GPON products for 191 million and Huawei LTE products for 300 million. The large orders from major customers strongly supported the growth of the company's business. The OEM model establishes a clear development path. The company adheres to the “ODM+EMS” business model. DDM requires the company to focus on product design, while the EMS model requires the company to focus on cost control. The company clarifies its own market position, strengthens R&D investment, effectively controls costs, and enhances its own competitiveness. With the rise of domestic electronics manufacturers, the domestic electronics foundry business continues to expand, and the company's future market prospects are promising. Risk warning: Customer development falls short of expectations, and cost control is poor.