Ben Jacoda announced solid results for the second quarter of 2019, with strong revenue growth and improved profit margins during the period. This once again quotes our positive view of the company, and also reflects that weak smartphone shipments did not have a significant impact on the company's operations. This performance also confirms our belief that Pinecota has the company's own growth momentum. The company's orders declined moderately from an all-time high of RM303 million at the end of December 2018 to RM252.4 million at the end of March 2019. We expect that by the second half of the year, the company's orders will show signs of a gradual recovery compared to the first half of the year. We still believe that the company's orders will support its growth in 2019. The company's growth in the short term will be supported by smartphone OEMs adopting more new technology and Penjacoda's business expanding into more industries. We believe that reshaping the global supply chain will drive growth for the company. We raised our target price from HK$1.52 to HK$1.69, mainly due to an increase in our 2019 profit forecast and the use of a higher target price-earnings ratio (from 10x to 11x). Net profit increased 29% in the second quarter. Benjakoda's performance in the second quarter was steady. Revenue for the period was RM120.3 million, up 18.7% year-on-year from RM101.3 million in the second quarter of 2018. Net profit for the second quarter was RM31.5 million, up 29.2% year over year from RM24.3 million in the second quarter. The positive results for the second quarter were due to: a) better-than-expected gross margin, and b) the company's control costs. The gross margin for the second quarter was 36.4%, up from 35.3% in the first quarter, and the highest level since the first quarter of 2018 (compared to our previous forecast of gross margin for the full year of 2019 of 32.4%). In the second quarter, administrative and management expenses as a percentage of total turnover were 10.2%, down from 11.8% in the first quarter of 2019 and 23.6% in the second quarter of 2018. The improvement in gross margin was due to: a) a) the company delivered more projects with higher profit margins to some customers who placed repeated orders; b) achieved economies of scale during the period; and c) the increase in the contribution of automobiles and consumer-related products. As of the end of June 2019, the company's cash and cash equivalents were RM285.5 million, up from RM269.3 million at the end of March 2019 and RM217.7 million at the end of December 2018. The company's on-hand orders declined moderately from an all-time high of RM303 million at the end of December 2018 to RM225.4 million at the end of March 2019. We believe that the decline in orders is normal, and we expect orders to rise again in the second half of 2019 (compared to the first half of 2019). We believe the company's on-hand orders will help support growth throughout 2019. The company's second-quarter results quote our positive view of the company, and also reflect that weak smartphone shipments did not have much impact on the company. We still believe that in terms of smartphone-related business, Pinecoda will mainly benefit from the spread of new smartphone technology. The driving force for growth is in the next few years. The company's growth will mainly come from: a) deeper cooperation with customers to provide better test equipment and solutions to meet the demand for intelligent sensors in more products and market segments; b) the company further expands its 3D sensor module testing equipment and solutions business; c) the company continues to actively explore other markets. We believe that as the trade situation between China and the US continues to heat up, the reshaping of the global supply chain will be one of the focus of the market. We expect Penjakoda to benefit from this trend, taking into account Penjacota's expertise, customer network, and geographical coverage. We raised our target price from HK$1.52 to HK$1.69, mainly: 1) after raising our 2019 gross margin forecast from 32.4% to 35.9%, we raised our 2019 profit forecast; 2) we raised our target price-earnings ratio.