CGN New Energy recorded 2018 mid-year revenue of US$690 million (up 31.7% year on year) and net profit of US$70 million to mother (up 101.8% year over year). Due to the good performance of the wind power business, the company's mid-term results beat market expectations. We raised our EPS forecast as follows: from $0.016 to $0.027 (up 92.9% year over year), from $0.017 to $0.032 in '19 (up 18.5% year over year), and from $0.019 to $0.035 (up 9.4% year over year) in '20. We raised our target price from HK$1.00 to HK$1.38. There is still 16% room to rise from the current price target price, and the rating will be upgraded to increase holdings. Strong growth. In the first half of '18, most of the company's business revenues increased, particularly the Korean gas and fuel project (US$440 million, up 41.5% year on year), China's coal, cogeneration and gas project (US$110 million, up 22.4% year on year) and China's wind power project (US$90 million, up 27.8% year on year). The sharp increase in revenue is mainly due to the increase in power generation capacity of the Yulchon Phase I and Phase II power projects last year due to the severe winter cold in South Korea. Furthermore, due to improved electricity limit rates, the wind power business is also performing well. In the first half of this year, the number of hours used by wind power increased 26.3% year over year to 1,052 hours. The company's operating margin declined slightly from 17.1% in the first half of '17 to 15.6% in the first half of '18, mainly due to a 48.4% increase in operating expenses on coal, oil and gas to US$420 million. The company announced that it will not pay dividends in the first half of the year. Steady progress. Compared to the first half of '17, capital expenditure for the first half of this year increased sharply by $130 million to $150 million. This capital expenditure is mainly used for wind power projects and biomass energy projects in Korea. In the first half of '18, the company added 113.4 MW of wind power installed capacity. Since about 60% of the company's wind power installations are located in Gansu Province, the improvement in power restrictions has contributed significantly to the company's profits. Net profit from the company's wind power business increased by 82.5% to US$34.5 million. South Korea's gas and fuel projects also grew from $16 million in the first half of '17 to $34 million in the first half of this year, mainly due to a non-recurring one-time after-tax revenue of about $17.8 million from sales of carbon emissions in South Korea. Raise the rating to increase your holdings. We raised our EPS forecast as follows: from $0.016 to $0.027 (up 92.9% year over year), from $0.017 to $0.032 in '19 (up 18.5% year over year), and from $0.019 to $0.035 (up 9.4% year over year) in '20. We raised our target price from HK$1.00 to HK$1.38, which is equivalent to 6.5 times 18-year PE and 0.8 times 18-year PB. There is still 16% room to rise from the current price target price, and the rating will be upgraded to increase holdings