The company released its 2017 mid-year report. In the first half of 2017, the company achieved operating income of 850 million yuan, a year-on-year increase of 41.28%, operating profit of 72 million yuan, an increase of 57.65% over the previous year, and net profit attributable to the parent company of 40 million yuan, an increase of 42.73% over the previous year, equivalent to EPS of 0.08 yuan. The company does not pay cash dividends or transfers for half a year. The main business grew steadily, and Intest continued to contribute incremental revenue. From January to June, the company's traditional main business revenue of steel wheel products reached 624 million yuan, up 30.14% year on year. Revenue growth was mainly due to strong demand for commercial vehicles in China in the first half of the year, and the company's commercial vehicle wheel sales increased sharply year on year. Benefiting from the successful development of several new customers in the field of new energy vehicles and traditional vehicles, the company's in-vehicle wireless and integrated products achieved revenue of 99 million yuan in January-June, an increase of 39.42% over the previous year. Among them, T-BOX products sold 131,400 units, an increase of 1.5 times the previous year, and the market share was significant Improvement has become a stable source of incremental revenue for the company. The reduction in the prices of connected car products affects the company's gross profit margin. By product, in January-June, the company's gross margin of steel wheel products was 20.20%, up 1.81 percentage points from the previous year, mainly due to the increase in product sales; the gross margin of automotive wireless and integrated products was 46.30%, down 15.55 percentage points from the previous year. The sharp decline in gross margin of connected car products was mainly due to the subsidiary Intestor lowering product prices to expand market share. Affected by this, the company's consolidated gross margin for January-June was 21.45%, a year-on-year decrease of 0.54 percentage points. I am optimistic that the company will comprehensively lay out the vehicle network around intelligent connectivity and big data operations. The company held 51% of the shares of the leading supplier of T-BOX in China in 2015, and 58.23% of the shares of 95 Zhilian, the leading supplier of Internet of Vehicles in 2016. At the same time, it also participated in Guangliao News and Rainbow Wireless, which have innovative business models, respectively, and continued to develop the Internet of Vehicles sector. At present, the company has formed a strategic layout with intelligent connected vehicle data as the core, closely following the three important aspects of data collection, data analysis, and data application. Judging from current trends, the company is expected to form an entire industry chain in the field of intelligent connected vehicle data covering in-vehicle hardware, connectivity solutions, and application services in the future. Profit forecast: We expect the company's revenue in 2017-2019 to be 16.07 billion yuan, 17.99 billion yuan, and net profit attributable to the parent company's owners of 0.77, 1.00, and 128 million yuan respectively, equivalent to EPS of 0.15, 0.19, and 0.25 yuan, respectively, corresponding to the closing price of 10.38 yuan on August 7. The price-earnings ratio is 70, 53 times, and 42 times, respectively. In view of the company's current stable main business and the layout of the entire industry chain with in-vehicle hardware, connectivity solutions and application services in the field of vehicle networking, we believe that the company is expected to share the dividends brought by future development in the Internet of Vehicles field and maintain the company's “prudent recommendation” investment rating. Risk warning: (1) Domestic automobile market sales fall short of expectations; (2) Imtest product sales fall short of expectations, etc.