Performance summary: The company released its 2019 semi-annual report, achieving revenue of 2.79 billion yuan (+12.6%), net profit of 280 million yuan (+100%), net profit of 280 million yuan (+100%), and deducting non-net profit of 260 million yuan (+171.8%). Among them, Q2 achieved revenue of 1.65 billion yuan (+13.5%), net profit of 160 million yuan (+28.4%), net profit of 160 million yuan (+105.9%) after deducting non-net profit of 160 million yuan (+105.9%). Q2 Profitability rebounded, driving performance to exceed expectations. The company's performance exceeded expectations, mainly due to the fact that the investment income brought by Hitachi Elevator (30% of the company's shares) was in line with expectations. The company's headquarters business picked up at an accelerated pace and gross margin increased, resulting in Q2 performance exceeding expectations. The company's non-net profit for 2019 Q1 and Q2 was 90 million yuan and 160 million yuan respectively. Excluding investment income in joint ventures and joint ventures, it was -0.2 billion yuan and 0.4 billion yuan respectively, indicating a significant improvement in the performance of the Q2 headquarters. In 2019Q2, the company achieved revenue of 1.65 billion yuan (+13.5%), gross margin of 15.4% (+0.3 pp, +3.2 pp), period expense ratio of 12.9% (-0.4pp), of which sales expense ratio was 2.9% (-0.4pp), management expense ratio was 10.3 (-0.3pp), financial expense ratio was -0.3 (+0.4pp), profitability rebounded significantly, resulting in performance exceeding expectations. Hitachi elevators quickly recovered, and profits reached record highs. Hitachi Elevator's net profit for 2016 H1 to 2018 H1 was 750 million yuan, 680 million yuan, and 4.2 billion yuan respectively. Against the backdrop of 2019H1 elevator industry production returning to double-digit growth, Hitachi Elevator achieved revenue of 11.46 billion yuan (+28.1%) and net profit of 1.06 billion yuan (+151.3%), a record high, contributing 240 million yuan in investment income to the company, driving the company's 2019H1 investment income in joint ventures and joint ventures to 240 million yuan (+170%), of which Q1 and Q2 were respectively 110 million yuan (+285.4%), 130 million yuan (+113%). Profit forecasts and investment advice. The company's net profit for 2019-2021 is estimated to be 52/55/ 600 million yuan, corresponding EPS of 0.6/0.64/0.7 yuan, respectively, and corresponding PE valuation of 14/13/12 times, respectively, maintaining the “increased holdings” rating. Risk warning: elevator demand or unanticipated risk, profitability or unanticipated risk, return on investment or unanticipated risk.