In the first half of 2017, the performance review company achieved operating income of 2,567 billion yuan, an increase of 53.09% over the previous year; realized net profit attributable to shareholders of listed companies of 228 million yuan, an increase of 44.83% over the previous year, or basic earnings per share of 0.22 yuan. The performance was in line with expectations. Business analysis benefited from trade recovery, and the company's business scale continued to expand: in the first half of 2017, benefiting from the collaborative development of Beijing-Tianjin-Hebei Province and regional strategies such as the Belt and Road, interregional commodity exchanges became more frequent, domestic market demand was released, and the port domestic trade container transport market was vast. During the reporting period, China's large-scale ports completed cargo throughput of 6.25 billion tons, an increase of 7.5% over the previous year, and the growth rate rebounded 5.3 points from the previous year. Major ports have increased their investment in infrastructure construction for container logistics, and the domestic trade container transport industry is improving. At present, the company has a total capacity of 98,000 TEU and manages a total of 92 ships, an increase of 15 compared to the end of 2016, ranking among the top three domestic container logistics companies in the country. The company seizes the opportunities for rapid development of the industry and fully enjoys the increase in business volume brought about by the upward trend in the domestic trade industry. Revenue and profit continue to grow at an accelerated pace. Costs have clearly risen, and gross margin has declined: in the first half of 2017, although the company's revenue scale increased rapidly, operating costs grew faster than revenue growth due to the expansion of operating scale. The company recorded operating costs of 2.07 billion yuan during the reporting period, up 60.86% year on year, and gross margin was only 19.3%, down 3.9 pts year on year. We believe that the main reason is the rise in oil prices and the company's rapid expansion of business volume by using a large number of chartered ships, and the high cost of chartering has led to a lower gross margin of chartered vessels. Acquire 30% of Antetsu's shares to speed up the deployment of multimodal transportation: In April 2017, Antong Holdings transferred 30% of the shares of Beijing Railway Supply Chain Management Co., Ltd. As a comprehensive logistics service provider for domestic container multimodal transport, the company is based on multimodal transport layout considerations. Under the trend of the country speeding up the containerization of railway goods and gradually liberalizing prices in the competitive field of railway freight, the company further lays out the logistics network by absorbing logistics service providers using railways as carriers, further penetrates into mainland China, and has adopted a comprehensive “sea-rail-land” operation model. Relying on a comprehensive logistics informatization platform, we provide customers with smart logistics solutions. The investment advice company focuses on domestic trade container logistics services, which are the beneficiaries of “Belt and Road” domestic trade containers. The company is expected to acquire value in the entire logistics industry chain and enhance the company's profitability by absorbing railway assets to form a comprehensive “sea railway” multimodal transport model. It is estimated that the company's 2017-2019 EPS will be 0.54 yuan, 0.66 yuan, and 0.87 yuan respectively, and the corresponding PE will be 35 times, 28 times, and 21 times, respectively, maintaining the “buy” rating. Risks suggest a decline in domestic trade demand, and the development of multimodal transport falls short of expectations.