Net profit for the first half of the year increased 258.40%, and the company that contributed greatly to self-organizing networks and Beidou's high-precision business released the 2018 semi-annual report on the evening of August 16: in the first half of the year, the company achieved total operating income of 2,408 million yuan, an increase of 278.34% over the previous year; net profit of 180 million yuan, an increase of 258.40%; net profit after deduction of 156 million yuan, an increase of 21930.% year on year. The company's main business revenue situation is as follows: (1) Beidou's high-precision business revenue was 440 million yuan, up 62.18% year on year, gross profit margin of 48.05%; (2) Beidou mobile internet business revenue was 172 million yuan, down 9.36% year on year, gross profit margin of 41.58%; (3) space-time information service revenue was 134 million yuan, down 0.45% year on year, gross margin 35.70; (4) integrated channel business revenue was 1,620 million yuan, gross profit margin was 10.73%. Large orders for self-networking are being implemented at an accelerated pace, and the contribution of the self-networking business to 2018 performance is expected to expand significantly. From January to July 2018, the company continued to land self-networking business orders every month. From January to June 2018, the total number of orders signed was 2,501 billion yuan, which is more than the whole of last year (2.1 billion). If the current order signing rate continues to be maintained, the total number of self-networking orders is expected to double in 2018. In 2017, the company confirmed a total of 568 million yuan in revenue from the self-networking business and confirmed 1,620 million yuan in the first half of 2018. According to our analysis, most of these were unsettled orders from last year. The self-networking business will continue to make a significant contribution to the company's revenue in the second half of this year. The revenue of Beidou's high-precision business increased by 62.18%. In terms of comprehensive development of surveying and mapping in various application fields, high-precision boards and antennas increased by 229.43%, measurement products increased by 61.67%, and launched a new product with full functionality and high cost performance, the G970II RTK receiver; in terms of precision agriculture, product development cooperation with domestic manufacturers such as “One Step”, “Dongfeng” and overseas agricultural machinery manufacturers and new products were released; in terms of high-precision machinery control, cooperation with domestic machinery control manufacturers to complete continuous compaction control systems and drive drones , Development of platforms such as 3D guidance systems for pile drivers. Currently, the precision agriculture and machinery control business is in the business introduction period, and the products have the advantage of replacing foreign products. The development of the Beidou mobile Internet and space-time information service business is steady, and market expansion and industry cultivation go hand in hand with the Beidou mobile internet business. The company has further strengthened the product development and market expansion of the Beidou mobile smart terminal, focusing on strengthening the spatial and temporal information “cloud-side” solutions in the field of public safety and civil aviation; in the spatial and temporal information service business, the company has gradually integrated relevant resources in the field of spatial information, expanded geographic information surveying and spatial data acquisition services, and strengthening the application and expansion of “China's location” and “Chinese accuracy”. The application and expansion of spatial and temporal information applications is still in the industrial cultivation stage. The investment proposal expects the 2018-2020 EPS to be 0.61, 0.76, and 1.04 yuan, respectively. Maintaining the “recommended” rating. Risk warning: the delivery of self-networking business contracts falls short of expectations, and industry competition intensifies