Incident: The company released its 2017 semi-annual report. The 2017 H1 revenue was 6.048 billion yuan (+211.45%), and net profit to mother was 234 million yuan (+124.12%), and the performance continued to grow rapidly. The company's performance guide for the first three quarters was 32-390 million yuan, 130%-180% year-on-year. The pesticide boom led to high performance growth, and the share of revenue from the warehousing business increased rapidly: due to long-term tightening of environmental protection, the pesticide industry remained high in the first half of the year, and the prices of the company's main products remained high. The company's pesticide business revenue was 2.38 billion yuan, up 66% year on year, and gross profit of 390 million, up 31% year on year. At the same time, revenue from the warehousing business reached 3.6 billion, an increase of 800%, and gross profit of 63 million, an increase of 361%. The warehousing business accounts for 60% of revenue. The first phase of the company's 148,000 square meters has already been used, the second phase of the project is under construction, and it will become a new growth point in the future. Many projects such as glyphosate are about to be put into operation, and there is great potential for long-term growth: According to the company's interim report, the company has now put into operation a 1,000-ton anti-acetone project, and 5,000 tons of glyphosate and 2,000 tons of methoxylhydrazide will also be launched one after another. Currently, glyphosate has already been put into production, and it is expected to be completed soon. Currently, the overall supply of original drugs is tight. Once the new project is launched, it can bring results, and the company has great potential for long-term growth. Divesting Nongyi Network removes burdens, reduces losses and increases performance flexibility: According to the announcement, the company divested Nongyi Network, with investment income of nearly 60 million yuan. It is expected to reduce losses by nearly 2-3 million yuan. Getting rid of the burden will help the company move forward lightly and increase the flexibility of later performance. Investment suggestions: High growth in comprehensive pesticides, high growth in the warehousing business, new projects put into operation, divestment of Nongyi Network to reduce losses. We think it will not be difficult to achieve the company's performance guidelines for the first three quarters. The company's expected profit EPS for 2017-19 is predicted to reach 0.30, 0.41, and 0.46 yuan, maintaining the buy-A investment rating. The target price for six months is 7.46 yuan. Risk warning: Glyphosate sentiment is declining, and the recovery of the pesticide industry falls short of expectations