Report summary: The company released an interim report yesterday. In the first half of 2017, the company achieved revenue of 6.978 billion yuan, an increase of 1166% over the previous year, and realized net profit of 90.59 million yuan, an increase of 480.68% over the previous year; of these, net profit was 58.28 million yuan in the second quarter. The net profit for January-September is expected to be 2-250 million yuan, with a loss of 55.8 million yuan for the same period last year. In the first half of the year, there was a strong trend in general engineering contracting, which led to performance growth: during the reporting period, China Machinery Power achieved operating income of 578,13651 million yuan, an increase of 153.92% over the same period last year; and realized net profit of 247.2842 million yuan, up 54.97% from the same period last year. China Machinery Power is the leader in general engineering contracting. Synergies with the company's original business are gradually showing. It performed strongly in the new energy sector represented by photovoltaics in the first half of the year, with a promised profit of 380 million yuan for the whole year. The first half of the year was 65% completed, and it is expected to exceed the promised profit for the whole year. At the same time, China Machinery Power is actively seeking new development opportunities in transmission and distribution network engineering construction, new photothermal power generation technology, and overseas markets along the Belt and Road. It invested 73 million yuan in mechanical power in the power transmission and distribution sector and held 51% of Guangxi Nengmei's shares, helping the company expand the transmission and distribution market in southwest China. Currently, orders exceed 18.3 billion yuan, and large orders provide a guarantee for future performance: as of June 30, there are still 18.3 billion yuan of orders in hand, including 161 billion yuan for China Machinery Power, 1.9 billion yuan for pressure vessels, and 320 million yuan for marine, military, and new materials. During the reporting period, the company received a number of large orders, including the 5 billion yuan EPC general contracting project for the second phase of Jiangsu Delong Nickel Indonesia's 12×135MW self-owned power plant construction project. Large orders will guarantee future performance. Asset integration is further advanced, and resource utilization efficiency is expected to be further improved: through a series of integrations, the company has formed four major business segments: clean energy, high-end equipment, new materials, and offshore and military industries. During the reporting period, asset integration continued to advance. The company disposed of loss-making assets at the Shanghai New Coal Institute to reduce the burden on listed companies. At the same time, the equipment sector business was integrated into the chemical industry to achieve group management and sectorized management, which will further improve the efficiency of the company's resource utilization. Investment recommendations and ratings: The company's net profit for 2017-2019 is estimated to be 400 million yuan, 550 million yuan and 660 million yuan, EPS is 0.54 yuan, 0.75 yuan, 0.9 yuan, and the price-earnings ratio is 17 times, 12 times, and 10 times, respectively. Give a “buy” rating. Risk warning: New orders fall short of expectations, receivables collection falls short of expectations