Event description: The company released the 2018 semi-annual report: during the reporting period, the company achieved operating income of 560 million yuan, an increase of 37.55% over the previous year; the company achieved net profit of 26 million yuan, an increase of 90.52% over the previous year; and the company achieved net profit deducted from the mother of 024 million yuan, an increase of 101.82% over the previous year. Investment points: The sports industry chain layout is complete, and the main businesses of various major collaborative development companies are progressing steadily: the real estate sector achieved revenue of 403 million yuan, a year-on-year increase of 47.44%, gross margin of 21.08%, a year-on-year increase of 6.78 pct; the sports sector achieved revenue of 123 million yuan, an increase of 5.84% over the previous year, and gross margin of 21.82%, a year-on-year decrease of 6.79pct. In the sports sector, stadium operation management, leisure and fitness, and brokerage businesses performed well, achieving revenue of 0.63 million, 0.20 million yuan, and 29 million yuan respectively, with year-on-year increases of 19.00%, 20.87%, and 62.26%, respectively. The performance of the company's event management and operation business declined, but since the event management and operating business performance confirmation period was mainly in the third and fourth quarters, the semi-annual revenue reference significance of this business was limited, and we continue to be optimistic about the company's advantages in the field of tournament operation. Focus on the leading resources of the sports industry, create quality events, cultivate key projects, and the company is rich in industry leaders and has the ability to create and operate quality events. The company has become the operator of the “Beijing Marathon, Wuhan Marathon, Guangzhou Marathon” and “China International Road Cycling Race”; the company has become the exclusive development and operation agency for the 2018 City Club International Regatta, which will focus on expanding operations such as sailing and windsurfing; at the same time, the company is planning to integrate bicycle operation project resources, build a “Cycling in China” series and plan to create a bicycle theme park product combining sports and entertainment. In addition, the company has also actively invested in the organization and preparation of large-scale comprehensive games at home and abroad. It is currently carrying out market development work for comprehensive games including the 2019 “7th World Military Games” and the 2022 Beijing Winter Olympics, and undertakes market development projects for international and intercontinental sports events. The target price is 13.4 yuan, and the “increase in holdings” rating is given as a listed company under the State Administration of Sports. The company has strong overall competitiveness in the field of sporting events and stadiums, and can be expected to advance steadily in various businesses; if subsequent major asset restructuring is successfully completed, the company's asset scale will be further expanded, and profitability will be enhanced. We expect the company's EPS for 2018-2020 to be 0.09 yuan, 0.25 yuan, and 0.35 yuan respectively (of which the merger after restructuring was considered in '19 and 20), with a target price of 13.4 yuan, giving it an “increase in holdings” rating. Risk warning: risk that major asset restructuring may be suspended, suspended, adjusted or cancelled; the overall development of the sports industry falls short of expectations; systemic risk