Matters: The company released its 2017 semi-annual report on the evening of August 28. During the reporting period, the company achieved operating income of 1,372,4204 million yuan, an increase of 94.94% over the previous year; net profit attributable to shareholders of listed companies was 147.4894 million yuan, an increase of 173.67% over the previous year, slightly lower than market expectations. Our comments on this are as follows: Comment: Performance in various sectors has been growing steadily, and Weifeng International's account transfers and statements have helped increase mid-term profits. In the first half of 2017, in the company's main business, light conveyor belt business revenue increased 29.06% year on year; precision molding business in the automobile and home appliance industry maintained steady growth, with a growth rate of 23.92%; Weifeng International, a wholly-owned subsidiary for the toy and consumer electronics industry, began merging in November 2016. During the reporting period, Weifeng International achieved revenue of 485.5785 million yuan, accounting for 35.38% of overall revenue, which led to a significant increase in the company's revenue. Mold revenue accounted for a large increase in business revenue during the reporting period compared to previous years, so this sector had a high gross margin and strong profitability during the reporting period. Entering Tesla's supply chain is expected to benefit from Tesla's construction of a factory in China. The company announced in 2015 that Qingdao Yinglian Auto Parts Co., Ltd., a subsidiary of its subsidiary Qingdao Yingdong Molding Technology, signed a cooperation contract with Tesla. According to the contract, Tesla will include Qingdao accessories in the supply chain to develop, supply products, and provide supporting services. According to the company's disclosure on the interactive platform, the company still maintains a cooperative relationship with Tesla. Although the current business volume is small, if Tesla successfully builds a factory in China in the future, the company's business is expected to expand rapidly. Join hands with Xinba to enjoy the express delivery industry's listing dividends. The growth rate of intelligent sorting is expected to exceed expectations. In July 2015, the company entered the field of intelligent sorting systems through a capital increase to hold 51% of the shares held by Xinba Technology. After nearly two years of run-in and cooperative development, the company's orders have continued to increase. In the first half of 2017, the sector's revenue was 44.5017 million yuan, an increase of 34.85% over the previous year. At the same time, long-term stable partnerships with listed and quasi-listed express delivery companies such as Shentong, SF Express, and Yuantong have enabled the company to enjoy the demand dividends of the wave of listings in the express delivery industry, and the performance of the transformation strategy is worth looking forward to. Risk factors: 1. The promotion of intelligent sorting systems did not meet expectations; 2. Product sales declined due to the downturn in the macroeconomic economy. Maintain a “buy” rating. We maintained the company's 2017-19 net profit forecast of 342/445/543 million yuan, corresponding EPS of 0.75/0.98/1.20 yuan respectively, maintained a target price of 22.6 yuan, and maintained a “buy” rating.