Event: Yongli Co., Ltd. released its 2017 semi-annual report: In the first half of 2017, the company achieved operating income of 1,372 billion yuan, an increase of 94.94% over the previous year, and net profit attributable to shareholders of listed companies of 147 million yuan, an increase of 173.67% over the previous year. Among them, equity transfer payments unrelated to business activities were lost $1,5397 million due to exchange rate changes. In fact, net profit was 158 million yuan in half a year, an increase of 193.23% over the previous year. The gross profit margin for the first half of the year was 31.40% and the net profit margin was 11.03%, up 2.16% and 2.01% year on year, respectively. The conveyor belt industry remains prosperous. Vanderwell also brought in incremental revenue for conveyor belts in the first half of 2017 to reach 272 million yuan, an increase of 29.06% over the previous year. The main reasons: 1) The prosperity of the industry remains the same, and the conveyor belt industry maintains an annual growth rate of more than 15%. As the leader in the domestic conveyor belt industry, the company has a clear advantage in the middle and high-end markets; 2) Vanderwell was added in the first half of the year, bringing incremental revenue and profit. Vanderwell is mainly responsible for the processing and finishing of lightweight conveyor belts for European end customers. It achieved revenue of 39.6437 million yuan in the first half of the year, accounting for about 15% of the conveyor belt business in the first half of the year. Yingdong Plastic's growth is steady. Weifeng International is expected to exceed expectations in the second half of the year. Yingdong Molding achieved revenue of 570 million yuan in the first half of the year, an increase of 23.92% over the previous year; net profit was 31.924,400 yuan, an increase of 14.94% over the previous year. The net profit growth rate was lower than the revenue growth rate, mainly affected by the relationship between China and South Korea. Beijing 35 and Cangzhou 35, which support modern times, changed from profit to loss year on year, but according to the current net profit growth rate, there is no risk of achieving annual performance promises; Weifeng International achieved revenue of 486 million yuan and net profit of 984.546 million yuan in the first half of the year, accounting for 65.61% of the annual performance commitment of 150 million yuan (Weifeng's 17-year performance commitment converted according to the RMB exchange rate of 0.8474 to Hong Kong dollars). Weifeng's gross margin in the first half of the year increased by 9.78% to 36.20% compared to the end of 2016. Mainly, in the first half of the year, the mold business, which had production capacity leaning towards high-end business and high gross margin, accounted for a significant increase in Weifeng's revenue ratio. With the development of new customers in the second half of the year and the arrival of the peak consumer electronics season, Weifeng International is expected to exceed its performance promises throughout the year. The automatic sorting business increased 35% year on year in the first half of the year, and 2017 is expected to usher in an outbreak. In the first half of 2017, automatic sorting achieved revenue of 44.5017 million yuan, an increase of 34.85% over the previous year. Shinba has plenty of orders in hand, and it is expected that orders from logistics companies will be affected by the “Double Eleven” shopping festival and more revenue will be confirmed in the second half of the year. According to our estimates, express delivery companies such as SF Express, “Three Links and One Delivery”, and Debon alone will generate 50 billion yuan of demand for intelligent sorting equipment over the next 5 years. We believe that in 2016, Xinba Technology accumulated technology and increased brand awareness. In 2017, the company explored more opportunities for cooperation through widely distributed customer resource advantages, and the intelligent sorting business is expected to explode in 2017. Risk warning: The market expansion of the molding business falls short of expectations; the RMB exchange rate appreciates sharply; the automatic sorting business is not progressing according to expectations. Profit forecasts and valuations are not progressing according to expectations. Considering the favorable growth trends of the company's various businesses, we have increased our profit forecasts. The company is expected to achieve revenue of 3.316 billion yuan, 4,098 billion yuan and 4.801 billion yuan in 2017-2019, a year-on-year increase of 81.52%, 23.58%, and 17.17%; net profit attributable to shareholders of the parent company is 334 million yuan, 436 million yuan, and 528 million yuan respectively; the corresponding EPS is 0.74 yuan, 0.96 yuan, and 1.16 yuan respectively. The current stock price corresponds to a price-earnings ratio of 21 times, 16 Multiply and 13x to maintain the “buy” rating.