According to the report, the company announced the 2017 semi-annual report. Operating income increased 62.26% year on year to 427 million yuan, achieving net profit of 104.53 million yuan, turning a loss into a profit, and the main business continued to recover, in line with expectations. Key investment markets and products are making concerted efforts. At the inflection point of performance, the sales model has now been actively adjusted, and results are beginning to be seen. The company adjusted the original single-order sales model, established a multi-level and multi-dimensional sales model such as channel marketing, team marketing, and agency marketing, etc., and used excellent local sales resources to enrich the company's sales channels for cable sales. In the first half of the year, the company's sales revenue increased by 62.26% year on year, and the sales expense ratio decreased by 1.92 percentage points to 5.33%. The model adjustment achieved positive results. Integrate into the “Belt and Road” and sail your voyage to expand overseas. Overseas revenue for the first half of the year was 97.2191 million yuan, an increase of 25.7 times over the previous year. Currently, the company has established good cooperative relationships with various organizations such as China Steel Equipment, China Power Construction, China Energy Construction, and Harbin Electric. Among them, the company and China Steel Equipment established a cooperative relationship in April to undertake EPC projects for power transmission and transformation projects in Africa in the form of a consortium. It is still expected that it will expand to other countries and regional markets in the future. New products such as photovoltaics and nuclear power continue to grow, and traditional businesses have also been strengthened. In the first half of the year, the company's photovoltaic cable orders increased sharply, and revenue also increased by 49.71% year on year; nuclear power cable revenue increased 293.78% year on year, batch supply for Yangjiang Nuclear Power, Hongyanhe Nuclear Power, and Taishan Nuclear Power; aluminum alloy cable revenue increased 137.58% year on year; and traditional industries such as electricity and steel also grew exponentially. Looking forward to the release of new nuclear power and high voltage and ultra-high voltage products, performance growth will continue in June. The company's third-generation nuclear power “Hualong 1” 1E grade K1 wire and cable series products obtained certification test reports. It is expected that by the end of the year, it will obtain a civil nuclear safety design and manufacturing license for 1E grade K1 cables for third-generation nuclear power plants. Furthermore, the company's IPO fund-raising project was completed in April 2017, and the company will use this to increase production capacity for high voltage and ultra-high voltage power cables. We believe that nuclear power 1E grade K1 cables, as well as high voltage and ultra-high voltage cables, are all expected to become new growth points for the company's performance, ensuring continued growth in performance. Investment recommendations Our neutral forecast for 2017-2019 is 2056, 4554, and 83.61 million yuan, respectively, and the EPS under current share capital is 0.04, 0.09, and 0.16 yuan/share, turning losses into profits, respectively, with a year-on-year increase of 121.53% and 83.59%. Currently, P/B is 2.5 times. Maintain the company's “increased holdings” rating based on comprehensive considerations. Risk warning: new business expansion or unmet expectations, cable product profit margin may decline further