Incident: On August 4, the company released its 2017 semi-annual report. 2017H1 achieved revenue of 440 million yuan, up 46.21% year on year; net profit to mother of 69.1706 million yuan, up 38.79% year on year; net operating cash flow of 105 million yuan, EPS 0.33 yuan, and ROE 5.1%. Among them, there was a marked acceleration in the second quarter, achieving revenue of 234 million yuan, a year-on-year increase of 59.73%, and net profit deducted from non-return to mother of 29.778 million yuan, an increase of 42.9% over the previous year. The growth of refrigeration equipment is accelerating, and tank containers are recovering strongly: The company is a leading R&D and manufacturer of cold chain equipment and special containers in the country. Its main products are refrigeration equipment and tank containers, mainly quick-freezing equipment. 2017H1's refrigeration equipment achieved revenue of 123 million yuan, an increase of 29.42% over the previous year. As consumption continued to upgrade, the company actively adjusted its marketing strategy and transformed refrigeration equipment from traditional raw material processing to table food chain deep processing, and continued to maintain the company's leading position in cold chain equipment. Tank containers achieved revenue of 304 million yuan, an increase of 58.85% over the previous year. According to the announcement, the company received orders for more than 4,000 units from the top ten customers in the industry in 2016, and also developed small customers this year, and orders are expected to continue to break through. According to the semi-annual report, the company's advance book receipts were 214 million yuan, an increase of 28% over the end of 2016, which indicates continued revenue growth. The fund-raising project was gradually completed and put into operation, stabilizing the company's dominant position: the company carried out timely replacement and project construction work after listing. Currently, the cold chain equipment technology center has been completed, the cold chain equipment production expansion project has completed the production line layout and process design, and the tank container expansion project is being built in an orderly manner. It is expected that after the completion of the project, the company will achieve an annual production capacity of 620 quick-freezing equipment, 2,200 refrigerated containers, and 7,300 tank containers. In the future, the company also plans to transform and expand production, continue to increase the annual production capacity of 10,000 refrigerated containers and 103,000 tank containers, and add 100 million yuan in the annual output value of other refrigeration equipment. China's current market demand for refrigeration equipment and tank containers is rising steadily. The company will fully benefit from capacity expansion to seize market opportunities, and rely on technological upgrades and product structure optimization to meet the needs of high-end domestic and foreign customers and enhance the competitiveness of the company's industry. The first stock incentive was completed, showing confidence: On April 26, 2017, the company completed the registration of the first phase of the stock incentive plan, granted a price of 15.91 yuan/share, and awarded 344,600 restricted shares to 353 key employees, accounting for 1.64% of the current total share capital. The performance assessment indicators unlocked by the equity incentive plan three times are, respectively, that net profit in 2017, 2018, and 2019 increased by no less than 10%, 20%, and 30% compared to 2016, respectively. This equity incentive highlights management's confidence in the company's future development and injects new impetus into the company's rapid and stable development. Investment advice: We expect the company's net profit for 2017-2019 to be 167 million yuan, 215 million yuan and 266 million yuan, respectively, and EPS of 0.80 yuan, 1.02 yuan and 1.26 yuan respectively. The company's tank container business cycle has recovered, refrigeration equipment has grown steadily, and fund-raising projects have effectively increased production capacity after delivery. The first coverage gave a buy-A rating, with a target price of $32.00 for 6 months. Risk warning: Demand in the cold chain equipment industry falls short of expectations, and project construction falls short of expectations.