During the golden period of 5G construction, the company's performance increased dramatically. The company's revenue for the first half of 2019 was 910 million yuan, up 66.87% year on year; net profit to mother was 604.374 million yuan, up 350.88% year on year. There are two main reasons for the sharp increase in the company's performance. First, the company has achieved initial results in reducing costs and increasing efficiency in the traditional business of precision box systems, and its operating performance has bottomed out and rebounded; second, the company is grasping the golden period of domestic 5G construction, increasing research and development efforts for new products, and further developing new customers and new markets. Looking at the split in the first half of the year, the revenue of the precision box system business was 293 million yuan, and net profit increased 269.10% year on year; the mobile communication equipment business revenue was 608 million yuan, which was also a significant increase over the previous year. Driven by 5G products, gross margin increased dramatically. Bovat has both RF antennas and is technologically advanced, and the 5G era is expected to explode. During the 4G period, Beauvat was ZTE's core RF supplier, accounting for more than 20% of the market share; antennas were mainly sold to Nippon Electric and others. In the 5G era, RF and antennas will be integrated into AAU. Companies with integrated RF and antenna technology have greater advantages, and there are few targets for Bofa. The company increased R&D investment in the communications industry. The R&D expenses for the first half year of 2019 were 338.273 million yuan, an increase of 61.09% over the previous year, and the technological advantage will be maintained. After the 5G license was issued, the construction of 5G base stations across the country was greatly accelerated, and the company is deeply tied to ZTE and is expected to become ZTE's core supplier of antenna RF materials; at the same time, the development of new customers such as Ericsson will increase performance; the RF and antenna share in the Japanese market is expected to increase; the establishment of the American Sun Company to actively expand the North American antenna market has already paid off, which will ensure the company's steady growth. The elevator industry remains stable, reducing costs and increasing efficiency to improve profitability. The new real estate construction area has bottomed out and rebounded, and the renovation of old houses and the renovation of old elevators are gradually heating up to ensure the stability of the elevator industry. Affected by the sharp rise in raw material prices since Q4 2016, the decline in elevator gross margin has dragged down performance. The company has taken the initiative to promote automated and intelligent transformation, increase refined management efforts, and profitability may be restored. Profit forecast: Net profit from 2019 to 2021 is expected to be 155 million, 231 million, and 301 million yuan, respectively. The current stock price corresponds to dynamic PE of 46 times, 31 times, and 24 times, maintaining a “buy” rating. Risk warning: 5G construction falls short of expectations; new customer expansion falls short of expectations.