Key investment points: The semi-annual report showed impressive results, and the business progressed in all aspects: Star Cable released its 2018 semi-annual report. During the reporting period, it achieved operating income of 668 million yuan, an increase of 56.48% over the previous year; achieved net profit of 26.68 million yuan, an increase of 1.56 times over the previous year, and achieved net profit of 24.67 million yuan without deduction to the mother, an increase of 2.18 times over the previous year. The special cable business is advancing in all aspects of multiple application fields, achieving comprehensive expansion, and rapid growth in performance. The product continues to be optimized, and the product structure is gradually improving: the company continues to invest in high-end product research and development, deepens the high-end market segment through strategic cooperation and framework agreements, continuously optimizes the product and customer structure, and increases the proportion of high-end products. At the same time, we will promote fine management, promote the transformation and upgrading of intelligent manufacturing technology, and raise the level of corporate governance. Overseas markets expanded, and continued breakthroughs in rail transit, nuclear power, and new energy markets: Star Cable established an international division this year and achieved breakthrough progress in overseas business, achieving overseas revenue of 103 million yuan, an increase of 24.75% over the previous year, accounting for 15.42% of H1's total revenue. At the same time, rail transit equipment benefited from the expansion of overall domestic demand, and traditional markets such as nuclear power and new energy achieved rapid and steady growth. Rail transit and the company's traditional dominant business H1 achieved revenue of 78.44 million yuan and 3.09 million yuan respectively, and continued breakthroughs. Investment advice: We have adjusted our profit forecast. We expect the company's EPS for 2018-2020 to be 0.09 yuan, 0.12 yuan, and 0.17 yuan, respectively. The PE corresponding to the closing price on July 23, 2018 will be 66 times, 47 times, and 35 times, respectively, maintaining a prudent increase rating. Risk warning: the risk that the price of raw materials will rise more than expected, the risk that the exchange rate fluctuation will exceed expectations, the risk that the construction volume of new rail transit, new energy, and nuclear power projects will fall below expectations, and the risk that the price of ordinary cables and medium- and low-voltage cables will fall more than expected.