The performance preview predicts a 3% year-on-year increase in profit. We expect 1H19's revenue to remain the same year over year, and net profit to increase 3% year over year. Key points of focus Against the backdrop of weak offline demand, Aishida is actively promoting online to seek growth. 1) According to Amoy data, in 2Q19, the sales volume of Tmall Aishida's flagship kitchenware store was 16.08 million yuan, an increase of 60% over the previous year, equivalent to 24% of the sales volume of the flagship cookware store in Supor; the average sales price was 114 yuan, down 24% from the previous year. During the period when the economic growth rate is slowing, the growth rate of necessities of life and categories with low unit prices has increased significantly. 2) The company's “618” e-commerce promotion has had obvious results. In June 2019, the sales volume of Tmall Aishida's flagship kitchenware store was 9.94 million yuan, an increase of 118% over the previous year, which is equivalent to 33% of the sales volume of the flagship store in Supor cookware, accounting for a monthly increase; the average sales price fell 31% year on year, and the promotion was strong. 3) Judging from the sales structure, the sales of frying pans and steamers in Tmall Aishida's flagship kitchenware store reached 29% and 19% in June. Among them, steamer's share increased, mainly driven by increased sales volume. We expect some improvement in export business in 2Q19. 1) In 2018, the company's export business accounted for 34.3% of revenue. In 2Q19, RMB depreciated 2.9% against the US dollar, which is beneficial to the company's export business. 2) In 2Q19, the price of aluminum, the main raw material, fell by about 3% year on year, which helped improve the company's profit. The company completed an increase in its shareholding in Italy and Europe. 1) As of June 20, 2019, Shanghai Aishida Robotics Co., Ltd., a wholly-owned subsidiary of the company, has completed an increase in shares of Italy's Oss Intelligent Technology Co., Ltd. in the New Third Board Secondary Market, with an increase of 5.88 million shares, an average price of 1.7 yuan/share, and a total amount of 9.996 million yuan (excluding transaction fees). 2) After increasing its holdings, Shanghai Aishida held 7.88 million shares of interest in Europe, accounting for 9.98% of the total share capital of Europe. 3) This increase in holdings is for the purpose of strategic investment, and the company plans to hold the shares for at least three years. The valuation and recommendations reduced the 2019/20e EPS forecast by 5%/5% to 0.48/0.54 yuan, considering that there is still a large gap between Astar's main business and the leading company Supor. Maintaining a neutral rating, the target price was lowered by 5% to 9.50 yuan, corresponding to 20x/18x 2019/20e P/E, compared to the current stock price of 11%. The company's current stock price corresponds to 18x/16x 2019/20e P/E. Risk RMB exchange rate fluctuation risk; robot business integration risk.