Incident: On August 17, the company released the “2016 Semi-Annual Report”. The announcement stated that operating income, net profit attributable to shareholders of listed companies, and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss were 465 million, 74 million and 74 million yuan respectively, up 292.38%, 480.12%, and 954.13% year-on-year. Meanwhile, the January-September performance is expected to be 163,60.8-245.412 million yuan, with an increase range of 100%-150%. Comment: The photovoltaic industry has entered rapid expansion, and the scale of distribution is expected to continue to increase. The additional installed capacity of photovoltaics during the “13th Five-Year Plan” period will be more than 3 times the cumulative installed capacity during the “12th Five-Year Plan” period. Among them, the distributed scale will reach 70 GW during the “13th Five-Year Plan” period, with room for 10 times growth, with an average compound annual growth rate of more than 50%, and the development of the photovoltaic industry on the fast track. In 2015, the company entered the distributed photovoltaic industry for the first time. In the first half of 2016, Shanghai Memphis New Energy Technology Co., Ltd., a subsidiary of the company, used national policies to support the photovoltaic industry, increased its investment, accelerated development, focused on developing distributed photovoltaic system projects, and undertook a number of photovoltaic projects. The share of distributed photovoltaic business in the company's business sector gradually increased during the reporting period. Gross profit increased 17.68% year on year. Revenue accounted for about 54% of revenue, and has become one of the main businesses. As the scale of distributed photovoltaics installed in China continues to expand, it is conducive to the continuous improvement of the company's distributed photovoltaic performance. The main construction industry is deeply integrated with the main photovoltaic industry, and performance is guaranteed. We pointed out in our 2016 Investor Strategy Report “Investment Strategy for the New Energy Industry in 2016: The Landscape Is Not the Same as It Used to Be” that peripheral listed companies such as building decoration, agriculture and fishery are also gradually entering the acquisition and construction of photovoltaic power plants, further extending their main business chain, strengthening the deep integration of their main business with photovoltaic power plants, and enhancing future profitability. The company has expanded business resources related to the construction industry, such as metal roof fencing, to the distributed photovoltaic industry, which is conducive to the deep integration of the two main businesses, resource sharing, and further improvement of profitability. In the next five years, metal roof fencing will continue to be promising. The state stated in the “13th Five-Year Plan” that by 2020, the total number of transportation airports in the country will reach more than 260, and general airport construction will enter counties and counties to build integrated transportation hubs with more than 20 major airports as the core. Railway investment is planned to reach 3.8 trillion yuan, and the construction of 30,000 kilometers of high-speed railways will continue to drive the company's metal roof enclosure business. Profit forecast. In the context of the continuous release of supporting policies for the photovoltaic industry and technological progress, the company's distributed photovoltaic business continues to expand and is expected to usher in sustainable growth. After dilution, it is predicted that the company's 2016-2018 EPS will be 0.53, 0.67, and 0.85, respectively, giving it a “buy” rating. Risk suggests that the company's distributed photovoltaic business has met expectations, and the new energy policy has changed