Incidents: Kim Jong-dae released its semi-annual report. 2018H1 achieved operating income of 13.770 billion yuan, an increase of 10.38% over the previous year; operating profit of 1,148 billion yuan, an increase of 3.99%; net profit of 838 million yuan, an increase of 5.44% over the previous year; and diluted earnings per share of 0.27 yuan. In the 2018 Q2 quarter, the company achieved operating income of 6.896 billion yuan, a year-on-year increase of 1.99%; operating profit of 438 million yuan, a year-on-year decrease of 15.09%; net profit of 308 million yuan, a year-on-year decrease of 18.88%; and diluted earnings per share of 0.10 yuan. The company expects the net profit range of 0.00% to 30.00% from January to September 2018, and the change in the net profit range of 90,770.8 to 118.0203 million yuan. Maintain a “buy” investment rating. The company's marketing transformation is beginning to bear fruit. The “Jinfeng Commune” model has driven rapid customer business growth, product sales have remained stable, and Kim Jong-dae's performance in the first half of 2018 has achieved steady year-on-year growth. Jin Zhengda is one of the leading compound fertilizer companies in China, gradually forming a product pattern dominated by products such as ordinary compound fertilizer, slow-release fertilizer, and soil conditioner. The company actively expands the global market, acquires German Kangpu Horticulture, Dutch Hawken, etc., and continues to enhance its competitiveness and international popularity. More importantly, in the context of zero growth in the fertilizer industry, the company cooperates with international financial companies to focus on agricultural services, create a Jinfeng commune model, enter the vast agricultural service market, and open up broad development space. We maintain the company's 2018-2020 EPS forecast of 0.38, 0.45, and 0.59 yuan, respectively, and maintain the “buy” investment rating. Risk warning: demand continues to be sluggish; projects are progressing less quickly than expected; raw material prices fluctuate greatly.