There was a significant increase in performance in the first half of the year: the company released its 2017 semi-annual report, achieving revenue of 1,372 billion yuan, an increase of 94.94%; net profit to mother was 147 million yuan, an increase of 173.67% year on year; and EPS was 0.33 yuan. On a quarterly basis, Q2 achieved revenue of 728 million yuan in a single quarter, an increase of 80.2% year on year, and net profit to mother of 76 million yuan, an increase of 117% year on year. The company's main business scale increased and sales increased; Weifeng International was included in the scope of the company's merger in November 2016, and Vanderwell was included in the scope of the company's consolidated statements in January 2017, so the revenue growth rate was high. Furthermore, due to the high gross margin of Weifeng International's business, the increase in operating profit and net profit was higher than the increase in operating income. Conveyor belt performance is growing steadily, and the molding and automated sorting business is developing rapidly. By business, in 2017, the H1 light conveyor belt business achieved revenue of 272 million yuan, a year-on-year increase of 29.06%, achieving net profit of 30 million yuan and a gross margin of 48%. In the precision molding business, Yingdong Molding (for the automobile and home appliance industry) had revenue of 570 million yuan, an increase of 23.92% over the previous year, achieving net profit of 32 million yuan. Weifeng International (for the toy and consumer electronics industry, included in the scope of the company's merger in November 2016) had revenue of 486 million yuan and net profit of 98 million yuan; the automated sorting system business revenue was 44.5 million yuan, an increase of 34.85% over the previous year, and net profit was 2.15 million yuan. The “two-wheel drive” model for the lightweight conveyor belt+precision molding business helps the company continue to grow. The company further consolidated and enhanced product competitiveness in the original light conveyor belt business, leading to an increase in the company's orders and a corresponding increase in operating income and net profit. Downstream customers of light conveyor belts are very scattered. The value of this type of product is very low in the customer's complete equipment, and it is difficult for new competitors to penetrate customers in a short period of time, so customer stickiness is high; the company acquired Yingdong Molding and Weifeng International to enter the precision molding business in 2015 and 2016, and their products are widely used in a wide range of fields such as automobiles, home appliances, consumer goods, education, food, etc., and the market demand is huge. Weifeng International mainly targets overseas customers in the toy and consumer electronics industries. It can complement Yingdong Molding, which mainly has domestic customers in the automobile and home appliance industries, and diversify operating and exchange rate risks. Yingdong Molding's customers include well-known domestic and international automobile or home appliance companies such as FAW Toyota, Shanghai Volkswagen, Shanghai GM, Tesla, Mercedes-Benz, BMW, Sony, LG, and Haier. Benefiting from the development of the automotive industry, especially new energy vehicles, the company has broad development space. Weifeng International has established and maintained good long-term business relationships with many well-known multinational companies (such as LEGO and Cal-Comp). Most major clients have been working together for over 5 years. Excellent customer base and customer loyalty lay a good foundation for the company's future development and drive rapid growth in performance. Holding Shinba's 51% stake entered the automated sorting system business. The company increased its capital in 2015 to hold 51% of Xinba Technology's shares, entering the field of automated sorting system integration in the early stages of development in China. It is mainly aimed at large logistics groups and large enterprises with the capacity to build their own in-plant logistics systems. Currently, domestic companies are still mainly increasing market recognition and seizing market share. Benefiting from the development of e-commerce and express delivery industries, the prospects for the development of the automated sorting system business are promising. Investment advice: The company is the largest lightweight conveyor belt manufacturer in China, and later entered the field of precision molding and intelligent sorting. High-quality customer resources and broad market space will help the company develop in the future. The company's net profit for 2017-2019 is forecast to be 360 million yuan, 465 million yuan, and 545 million yuan respectively, and EPS will be 0.79 yuan, 1.03 yuan, and 1.20 yuan respectively. Maintaining the buy-A rating, the target price for 6 months is 21 yuan. Risk warning: Risk of falling conveyor belt gross margin, subsidiary performance may fall short of expectations.