Key investment events: Antong Holdings released its 2017 semi-annual report. In the first half of the year, it achieved operating income of 2.57 billion yuan, up 53.1% year on year; net profit to mother was 230 million yuan, up 44.8% year on year, EPS was 0.22 yuan; net profit after deduction was 220 million yuan, up 46.3% year on year. Among them, net profit from mother for the first quarter was 120 million yuan, up 125.4% year on year; net profit from mother for the second quarter was 110 million yuan, up 3.2% year on year. Comment: Freight rates in the domestic trade shipping market fell month-on-month in the second quarter. In the first half of the year, the average coastal container freight index issued by the Tianjin International Trade and Shipping Service Center was 774.7, an increase of 1.1% over the previous year. Among them, 854.8 in the first quarter, up 15.6% year on year; 695.9 in the second quarter, down 12.2% year on year and 18.6% month on month. Domestic trade freight rates declined somewhat in the second quarter due to intense market competition. The company's performance in the second quarter was stable. The company's revenue for the first half of the year was 2.57 billion yuan, up 53.1% year on year; gross profit margin was 19.3%, down 3.9 percentage points from the same period last year. Among them, revenue for the first quarter was 1.17 billion yuan, up 62.4% year on year, with a gross profit margin of 23.8%; revenue for the second quarter was 1.4 billion yuan, up 46.2% year on year, with a gross profit margin of 15.7%. Due to the fall in freight prices, gross margin declined somewhat in the second quarter, but the increase in business volume led to a sharp increase in revenue, and net profit in the second quarter was basically the same as compared to the same period last year. Initiate an employee stock ownership plan. On July 14, 2017, the company plans to launch the first phase of the employee stock ownership plan. The maximum amount of capital raised is 200 million yuan, each share is 1 yuan, and no more than 300 employees will participate in the plan. Among them, 9 senior directors and supervisors of the company, including the chairman, director, chairman of the board of supervisors, supervisors, deputy general manager, and financial director, have a total subscription share of about 64 million copies, accounting for 32% of the total share. Other employees have a total subscription share of about 136 million copies, accounting for 68%. The plan lasts for 24 months and has a lockdown period of 12 months. Employee shareholding helps the company establish and improve the benefit-sharing mechanism between workers and owners, further improve the corporate governance structure, effectively motivate managers and company employees, and attract and retain outstanding management talents and business backbone. Prepare for the construction of integrated logistics bases in many places, and actively lay out multimodal transport outlets. On July 18, 2017, the company signed a “Strategic Cooperation Framework Agreement” with the Tanggang District Management Committee to build a multi-modal integrated logistics base project covering the Bohai Rim region and Inner Mongolia, Shanxi and Southeast Asia in Tanggang District. The initial functional plan includes three platforms (cross-border e-commerce platform, commodity trading platform, general goods trading platform), six major warehouses (bonded warehouses, delivery warehouses, cold chain warehouses and cold chain processing zones, agricultural products warehouses, integrated warehouses, e-commerce warehouses), and a regional distribution center. The construction is planned to be carried out in three phases. Meanwhile, on August 16, 2017, the company plans to set up a wholly-owned subsidiary to participate in the land use rights auction in Shishi City, Fujian Province, to lay out a multimodal transport logistics park. The sale covers an area of 337,000 square meters, with a starting listing price of 160 million yuan, a bid deposit of 32.54 million yuan, and a sale period of 50 years. Increase the purchase of cold boxes and increase investment in the cold chain business. The company raised 700 million yuan in supporting capital at the same time as going public, of which 480 million yuan was used to purchase containers. In September 2016, due to the need to expand the geographical scope of business, enter market segments, and expand the cold chain business, the company adjusted the type and quantity of containers purchased in the fund-raising project, reducing the number of small ordinary containers, large ordinary containers, and 20-foot bulk containers, and increasing the number of refrigerated containers, special size tanks, 40-foot ultra-high containers, and conventional size tanks. As of July 31, 2017, an amount of 110 million yuan (not including the final contract amount for refrigerated containers) has not been put into use. On August 14, 2017, due to national policies and corporate strategy adjustments, the company decided to use the remaining funds to purchase 750 refrigerated containers. It is expected that the purchase of new refrigerated containers will effectively enhance the profitability of the company's cold chain business. Profit forecast. Multimodal transport has broad prospects. Currently, it is ushering in development opportunities. As a leading private multimodal transport enterprise, the company will clearly benefit and have broad prospects for growth. The company's EPS in 2017-2019 is expected to be 0.49, 0.62 and 0.78 yuan, corresponding PE is 38, 30, and 24 times, maintaining the “gain” rating. Risk warning: Domestic trade demand has declined sharply, and multimodal transport development falls short of expectations