The company released its 2018 semi-annual report: the company achieved revenue of 527 million yuan in the first half of 2018, an increase of 19.76% over the previous year; realized net profit of 81.73778 million yuan, an increase of 18.17% over the previous year. New orders helped increase performance, and refrigeration equipment grew rapidly. In the first half of 2018, the company's tank container business achieved revenue of 346 million yuan, an increase of 13.66% over the previous year, accounting for 65.65%; the refrigeration equipment business achieved revenue of 182 million yuan, an increase of 47.84% over the previous year, accounting for 34.54%. The tank container market is picking up, and the world's largest rental companies are buying more containers than in previous years. In the first half of the year, they added bulk orders from customers such as Raffles, Taifu Leasing, and Hite Leasing. The decline in gross margin of the tank business is quite obvious. It is related to the completion of new production lines but not fully put into use. Demand for tank containers is strong, and production capacity is expanding to increase growth space. The “13th Five-Year Plan” Railway Multimodal Container Transport Development Plan issued by the National Development and Reform Commission and other departments clearly calls for the vigorous development of international standard containers and the promotion of the use of special containers such as tanks. Railway container traffic accounts for only 5.4% of railway freight volume, which is far below the level of developed countries. With the advancement of the Belt and Road Initiative, railway freight demand for tankers has increased recently. The company's tank container production expansion project is progressing smoothly. After completion, the tank container production capacity is expected to expand to 10,000 units/year, which is more than 2.4 times the original production capacity, which can lay a good foundation for the company to further expand its revenue scale. China's cold chain construction is in its infancy, and there is huge room for future improvements. In 2015, the cold chain circulation rate of fruits, vegetables, meat and aquatic products in China was less than half that of developed countries, and the per capita cold storage area was only 1/6 of that of the US. China's cold chain industry has a lot of room for development. The State Council issued “Opinions on Accelerating the Development of Cold Chain Logistics, Ensuring Food Safety and Promoting Consumption Upgrading”, which will significantly catalyze the development of China's cold chain industry. The company has advanced quick-freezing technology and is continuously developing new technologies, and is expected to enter a rapid upward channel. Profit forecast and rating: The company is the second largest tank supplier in the world and a leading domestic quick-freezing equipment manufacturer. It is estimated that the 2018-2020 EPS will be 1.08/1.26/1.45 yuan, maintaining the “prudent increase in holdings” rating. Risk warning: The development of the cold chain falls short of expectations, and demand for tank containers falls short of expectations.