The incident company released its 2019 semi-annual report on July 24, 2019. In the first half of 2019, the company achieved revenue of 356 million yuan, an increase of 52% over the previous year; realized net profit of 70 million yuan, an increase of 59% over the previous year; realized net profit after deduction of 58.22 million yuan, an increase of 59% over the previous year; and achieved net operating cash flow of 48.11 million yuan, an increase of 1259% over the previous year. Briefly, wind power installations are picking up. The company's performance continues to grow at a high rate. The company previously estimated net profit of 0.66 to 75 million yuan in the performance forecast. The current semi-annual report is in the forecast range. The company's performance increased significantly year-on-year, mainly due to: ① There was a marked recovery in wind power installations, which led to a marked increase in the company's orders and expansion of business scale; ② On the basis of increased revenue, the company's gross margin increased from 37.6% in the same period last year to 39.6%. Q2's quarterly performance was 35.18 million yuan, up 1% month on month, but Q1 had non-recurring profit and loss of 12.33 million yuan, and Q2 non-recurring profit and loss was -550,000 yuan. From the perspective of deducting non-net profit, Q2 increased sharply by 81% year over year and a sharp increase of 59% over the previous month, reflecting a high profit quality and profit growth rate. The market boom will continue to be maintained for the next two years. Judging from the prosperity of the wind power industry, according to the “Notice on Actively Promoting Work Related to Unsubsidized and Affordable Internet Access for Wind Power and Photovoltaic Power Generation”, after 2021, the wind power price Internet will be implemented, and 2019-2020 will usher in a wave of wind power rush, and industry prosperity will improve. At the same time, based on the continuous pursuit of offshore wind power and new energy, overseas orders will also continue to grow. According to Vestas's annual report, it has ongoing orders of 15.6 GW in 2018, an increase of 36% over the previous year; on the other hand, from the company's own perspective, The impact of the integration of Siemens Gamesa completely disappeared in 2019. The company's orders are expected to be substantially full, and performance is reversed. Fund-raising projects continue to be implemented. To solve the company's production capacity bottleneck, the fund-raising projects were put into operation one after another in 2018-2020. The annual production of 100,000 auto parts projects completed land acquisition, plant construction and the introduction of key equipment, and achieved 10 million sales revenue in 2018; large-scale non-metallic mold and wind turbine hood projects have been launched in Yancheng, and the company currently leased a plant of 12,000 square meters. In 2018, it completed the production of two sets of wind turbine blade molds and ten sets of large-scale offshore wind turbine housing products, in Yucheng, Yucheng, more than 100 acres, The construction of 4 plants will, on the one hand, meet the production of large-scale non-metallic molds and cabin cover products for offshore wind power, and on the other hand, use the transportation advantages of Dafeng Port to lay out the production capacity needs of overseas markets, as a “two-sea strategy” layout. The company has introduced an outstanding team with superior technology and yacht market operation experience, and has jointly registered Shandong Shuangyi Yacht Co., Ltd., and Shuangyi Technology holds 70% of its shares. Double One Yacht plans to introduce more than 30 advanced production equipment (sets), 43 patented boat design and production technologies, 18 sets of boat production molds and related supporting facilities, and 32 ship-related product certifications, mainly sold to the United States, Canada, Australia, New Zealand and other markets. After completion of the project, it is estimated that the production scale of 2,000 sets of yachts and accessories will be achieved annually. The company continues to increase the number of composite materials for yachts and vehicles to build a new impetus for growth. Furthermore, during the reporting period, the company's Yancheng subsidiary has obtained 64 acres of land permits, and construction of the plant has now begun. It is expected that the construction of the plant will be completed by the end of 2019; the construction of workshops No. 5 and 6 of the company's Wucheng branch has already begun, and the two workshops have a construction area of more than 20,000 square meters. It is expected that construction will be completed and put into use by the end of 2019. At that time, the company's production capacity will be further expanded, which will effectively ease the pressure on production capacity. We expect the company to achieve net profit of 181 million and 239 million yuan in 2019-2020. The corresponding PE is 14X and 11X respectively, maintaining the buying rating.