Investment points: The net profit growth rate of the interim report is 37%, which is basically in line with expectations. In the first half of the year, Helitai's operating income was 8.502 billion yuan, up 39.51% from the same period last year; total profit was 78,200 yuan, up 33.59% year on year; and net profit attributable to shareholders of listed companies was 69,800 yuan, up 36.67% year on year. The net profit for January-September was 11.8-1.28 billion yuan, with a year-on-year growth rate of 30.21%-40.45%. Profit indicators were basically stable over the same period last year, and R&D investment increased. The gross profit margin for the first half of the year was 17.04%, a slight decrease of 0.52% year on year; net profit margin was 8.04%, down 0.31% year on year. Due to the increase in R&D investment in 5G and wireless charging, the company invested 277 million yuan in R&D in the first half of the year, an increase of 42.58% over the previous year; other revenue of 224 million dollars in the current period was mainly due to receiving operating government subsidies. The impact of the two on net interest rates declined. The “1+N” strategy has achieved remarkable results, with first-tier customers accounting for more than 60% of revenue. Promote cameras and fingerprint recognition to customers based on touch display module products. Since increasing camera production and construction efforts in 2017, the company has set up high-end, mid-range, and industrial-controlled vehicle camera production bases in Nanchang, Jiangxi, Ji'an, Shandong, and Yiyuan, Shandong, etc., respectively, with a monthly production capacity of 35 KK/month. The company's FPC mainly serves the flagship models of Huawei and OPPO. The company has planned a production base for high-end FPC, hard/soft board, COF-FPC, LCP flexible circuit board, and ultra-fine circuit board in Xinfeng, Jiangxi. TN/STN display module products, up 90.98% year on year; touch display products, up 33.76% year on year; camera products, up 265.79% year on year; and H-INK electronic paper, up 228.19% year on year. Lay out the entire wireless charging industry chain and develop high-end materials such as wave absorption and LCP. This is mainly due to the company's expansion of scale, large investment in camera and FPC circuit board production lines, and investment in the construction of two large-scale production bases. The company has mastered the technology and production technology of wireless charging nanocrystalline materials, strips, wave absorbing materials, large-screen touch and fine line FPC, LCP high-frequency materials, etc., enabling the company to enter first-tier brand customers at home and abroad. At present, the company has rapidly expanded production capacity for products such as wireless charging materials, transmitter modules, receiver modules, and absorber materials, etc., and is already providing nanocrystalline materials and modules for wireless charging to first-tier customers at home and abroad. Maintain profit forecasts and maintain a “buy” rating. The interim report is generally in line with expectations, maintaining the 2018/2019/2020 revenue forecast of 239/300/40.8 billion, and the net profit forecast of 18.2/24.8/3.47 billion. The current stock price corresponds to a price-earnings ratio of only 11 times in 2018. The emphasis is on buying ratings based on the company's increase in market share in low- and middle-end modules and the logic of domestic replacement of high-end materials.