Key investment events: The company released the 2019 interim results report. In the first half of the year, the company achieved operating income of 8.37 billion yuan, up 8.94% year on year, gross profit margin 12.1%, up 1.0 percentage point year on year, net profit attributable to parent company was 287 million yuan, up 39.8% year on year, and net profit per share was 0.14 yuan, up 40.0% year on year. In the second quarter, the company achieved operating income of 4.56 billion yuan, up 10.2% year on year, gross profit margin 12.8%, up 1.9 percentage points year on year, and net profit attributable to shareholders of listed companies was 191 million yuan, up 52.1% year on year. The company responded positively to industry fluctuations, and the main business sectors maintained steady revenue growth: the company achieved steady growth in revenue in the first half of 2019 and in the second quarter. Judging from the situation in the downstream industry market, demand for large-scale construction projects in the memory industry and integrated circuit industry declined, but in terms of the company's segment revenue, it can be seen that the general engineering contract and semiconductor packaging and testing business increased by 22.0% and 9.4% year-on-year respectively, showing a good growth trend. The photovoltaic industry also showed growth in the face of policy recovery. Despite fluctuating expectations brought about by uncertainty in terminal demand, the company's ratings continued to maintain a solid competitive advantage in the industry, continued to maintain steady growth in performance, and showed a good ability to withstand risks. Gross margin increased, and the company's expenses were well controlled: In the first half of 2019 and the second quarter, the company's gross margin increased in a single quarter. What is particularly noteworthy is that this was obtained when the company's revenue from design consulting services with high gross margin declined, showing that the company's good cost control capabilities in terms of turnkey construction and semiconductor integrated circuit memory packaging and testing. In terms of cost ratio, the company also showed a good improvement in management efficiency. The company's sales expense ratio and management expense ratio decreased by 0.1 and 0.4 percentage points year-on-year, respectively, while in terms of R&D investment, the company continued to expand. R&D expenses rose 43.2% year on year to 217 million yuan. We believe that the company's divestment of the chemical fiber business, focusing on the development of integrated circuit packaging and engineering construction industries, all depend on the improvement of technical capabilities and production, operation and management capabilities, so the company's investment in R&D will lay a solid foundation for future growth. Highlight the active layout of the main business, further optimization of the industrial structure, and precise expectations for the future: the company did not provide a performance forecast for January to September 2019. Judging from the company's strategic plan, after divesting the chemical fiber business, the company continued to focus on the industrial expansion part of the semiconductor industry. In the first half of 2019, the company participated in the establishment of Wuxi Xishan Microchip Semiconductor Co., Ltd. through investment to further lay out the semiconductor industry. We believe that the company already has global competitiveness in semiconductor integrated circuit memory packaging and testing, and the domestic memory industry is also in full swing, so the demand for high-end packaging and testing is worth the market's expectations. On the other hand, although the engineering construction industry has a certain degree of cyclicity, Eleven Technology, a subsidiary of the company, has good brand influence within the industry, so it can still gain new order drivers in fields including biomedicine, etc., and the photovoltaic sector can also achieve a steady recovery process under the recovery of industry policies. Investment advice: Our company predicts earnings per share for 2019 to 2021 to be 0.30, 0.33, and 0.38 yuan, respectively. The return on net assets was 8.7%, 9.2%, and 9.6%, respectively, maintaining the buy-B investment recommendation. Risk warning: insufficient demand in the memory market has led to a decline in the company's closed test orders; the reduction in order size in the construction industry poses a risk of revenue decline; policy changes in the photovoltaic industry bring risk of insufficient demand; and there is a risk that gross margin will be greatly affected by cost changes.