Introduction to this report: The company released its 2017 interim report, and the increase in revenue and net profit was in line with expectations. With the continuous expansion of traditional box board customers and the development of new fields of timber structure construction, the company will achieve steady growth. Investment points: Maintain the target price of 13.50 yuan and maintain an increase in holdings rating. The company released its 2017 mid-year report, and the increase in revenue and net profit was in line with expectations. With the continuous expansion of traditional box board customers and the development of new fields of timber structure construction, the company will achieve steady growth. Maintain 2017-2018 EPS of 0.51/0.67 yuan, maintain the target price of 13.5 yuan, and increase the rating. Performance growth is in line with expectations. In 2017 H1, the company achieved revenue of 733 million yuan, an increase of 18.07%; realized imputed net profit of 231 million, an increase of 18.65%; and realized vested non-net profit of 229 million dollars, an increase of 20%. Performance growth was in line with expectations. The gross profit margin was 44.98%, an increase of 4.7 pct compared to 2016 H1. , net profit margin of 31.47%, same increase of 0.1pct. , efficiency improvement is achieved through better cost control capabilities. The order volume and unit price have risen, and the market share has increased steadily. In addition to maintaining cooperation with existing customers, the company continues to develop world rental giants including Florens and Seacube, and promotes certification work for customers such as Maersk. The unit price of products and customer order demand are constantly increasing. Through the acquisition of Xinhuachang Timber, production capacity was expanded, and industry integration was further realized while increasing production capacity, thus further increasing market share. The construction of the wooden house project is gradually being implemented, which will create new profit growth points for the company in the future. As production capacity continues to be invested and surplus production capacity increases, the company is gradually expanding from a single container floor business to the downstream civilian sector. The villa model house, reception hotel, and three-story prefabricated model house projects are progressing steadily. With the implementation of green building and prefabricated housing policies, it is expected that the penetration rate of timber structure construction in the country will gradually increase in the future, and the company can expect room for future order acquisition, which will bring new profit growth points to the company. Risk warning: The development of new production capacity markets falls short of expectations, trade declines, and industry demand slows down.