Incident: The company announced its 1H17 semi-annual report on August 15. The first half of the year achieved operating income of 2.57 billion yuan, an increase of 53.09%; realized net profit attributable to listed companies of 228 million yuan, an increase of 44.83% year on year; deducted non-net profit of 222 million yuan, an increase of 46.28% year on year. The company's overall performance in the first half of the year was excellent, basically in line with our previous expectations. Half year performance analysis: Benefiting from the expansion of business volume, the company achieved a 50% + growth rate of revenue in the first half of the year. However, due to a 60.86% increase in operating costs compared to the same period last year, the cumulative gross profit margin for January-June was 19.32%, down about 4 percentage points from month to month compared to the 1Q figure. At the same time, the increase in personnel and the increase in capital costs led to an increase of 220 million dollars in management expenses last year, an increase of more than 40% over the previous year. The above reason was that the company's net profit growth rate was slightly lower than the revenue growth rate. Considering entering the traditional peak season for coastal shipping after the third quarter of previous years, the company is expected to continue its outstanding performance in the second half of the year. The first phase of employee shareholding was launched, demonstrating the company's confidence in the future. We believe that this employee shareholding draft reflects the confidence of executives and management employees in the company's future development and stock price. 1. Executives participate in 32% of the share; 2. Raise capital to buy company shares with a 1:1 leverage limit; 3. The product life period and stock lock up period is 24 months. Intensive railway layout to create a “trident” for multimodal transport. In our previous report, we have mentioned that the company intends to break the original business model of multimodal transport driven by the shipping module. In the medium to long term, the focus is on further expanding the original two-dimensional “shipping+highway” multimodal transport model to the “shipping+highway+railway” trident model. The customer base covered will also gradually expand from the coastal and Yangtze River port hinterland to the whole country, and the ceiling of the industry will further open up. The pan-Asian mixed reform may unleash major benefits for the industry. According to the announcement of the Stock Exchange on July 3, Fosun Industrial Investment plans to take a strategic stake of 427 million yuan in Pan Asia Shipping, accounting for 10% of the shares. Fosun (10%) and executives (8%) participating in the Pan-Asian mixed reform do not have liquidity in the secondary market in the short term. The main methods for future cash out include long-term dividends, primary equity market transfers, separate IPOs to obtain liquidity in the secondary market, and the parent company COSCO HCC's fixed increase in the acquisition of this portion of the shares to achieve liquidity. In the future, the level of profitability during the Pan-Asia period directly determines the return rate of employees' participation in equity investment. Considering that the company accounts for nearly half of the domestic trade market, Pan-Asia's pursuit of profitability after the mixed reform is very likely to drive the healthy operation and competitiveness of the industry The long term of the fee Antong Holdings directly benefited from the recovery. Investment advice The company performed well. The traditional peak season in the second half of the year is approaching, and there is a high degree of certainty about high growth throughout the year. From a long-term layout perspective, Antong Holdings' strategy of using listed platforms to launch upstream and downstream mergers and acquisitions to form diversified intermodal transportation methods has begun to emerge. We believe that the company may still actively deploy in the fields of railways, LTL, cold chain, consolidation, and hazardous chemicals in the future. The company's net profit for 2017-2019 is estimated to be 6.1, 8.0, and 973 million yuan, respectively, and will continue to be recommended. Risk warning: macroeconomic downturn, sharp rebound in oil prices