Event: The company released the 2018 interim report. In the first half of the year, it achieved operating income of 10.864 billion yuan, an increase of 35.67% over the previous year; realized net profit of 1,563 billion yuan, an increase of 13.50% over the previous year; and achieved net profit of 1,494 billion yuan, an increase of 12.19% over the previous year. Key investment points: The port production sector has reached a new high. In the first half of the year, the company achieved cargo throughput of 392 million tons, an increase of 6.9% over the previous year; container throughput completed 14.02 million TEUs in the first half of the year, an increase of 7.4% over the previous year, an increase higher than the average of coastal ports. At the same time, there has also been a steady increase in container flights. The total number of routes is currently 249, an increase of 6 over the end of last year. The volume of water and water transfer containers has increased 10.6% year on year. Sea-rail intermodal transport has continued to develop, completing 263,000 TEUs, an increase of 44% over the previous year. “One, two wings” has been upgraded across the board. From a regional perspective, cargo and container throughput in Ningbo increased 7.4% and 3.8% year on year respectively in the first half of the year; Zhoushan Port increased 24.3% and 13.7% year on year respectively; Jiaxing Port increased 13.7% and 15.3% year on year respectively; Wenzhou Port Group increased 6.6% and 6.3% year on year respectively; and Yiwu Dry Port's container volume completed 373,000 TEUs, up 6.3% year on year. After the substantial integration of the two ports of Ningbo and Zhoushan, the company has been able to coordinate all port resources of the two ports in Zhoushan, Ningbo, and even coastal ports throughout the province, further broadening the space for future development of port business. The investment advice company is the port with the most deep-water berths in China. It is also an important hub connecting various modes of transportation such as shipping and railway transportation in the country's “Belt and Road” strategy. In the future, it will continue to utilize the traditional advantages of the port and form a diversified development model driven by the three wheels of terminal operation, modern logistics, and capital operation. The 2018-2020 EPS is expected to be 0.20 yuan, 0.23 yuan, and 0.26 yuan respectively, maintaining the “recommended” rating. Risks indicate the risk of escalating trade frictions, and the risk of competitive diversion in neighboring ports.