Incident: On July 9, a performance forecast was announced. It is expected to achieve net profit of 30 million yuan to 33 million yuan in the first half of 2020, an increase of 1656% -1832% over the previous year. Interim results exploded, and business development progressed smoothly. The announcement expects to achieve net profit of 30 million yuan to 33 million yuan in the first half of 2020, an increase of 1656% -1832% over the previous year, mainly due to the smooth progress of the company's operations in the first half of 2020 and the smooth development of the business. Among them, the airborne protective armor business grew significantly, and at the same time obtained significant business opportunities. During the reporting period, the impact of the company's non-recurring profit and loss was about 550,000 yuan. Excluding this effect, the company's net profit after deduction of non-return to mother increased by 3100%-3426% year-on-year. The company lays out airborne equipment tracks, which are wide and long. The company's core business is anti-crash seats for helicopters. At the same time, it also lays out other fields such as airborne equipment development, aviation maintenance, and measurement and control equipment development. The track is wide and long. Furthermore, compared to competitors, the company's gross margin of business is at a high level, and has continued to increase investment in R&D and personnel reserves in recent years. Two new office plants were added and put into operation in 2018. With the gradual commissioning of fund-raising projects, the company's technical strength is expected to be further strengthened. There are sufficient orders on hand, and the annual performance is high and growth is certain. The company's anti-crash seats for defense helicopters account for about 90% of the domestic market share, and it is expected to achieve steady growth in the future with downstream mainframe deliveries. In 2020, the armor support business for military helicopters has grown dramatically, and according to the company's announcement, it has obtained significant business opportunities. We believe that the company's future performance will grow rapidly. Profit forecast and investment suggestions: We predict that the company will achieve operating income of 7.51/9.64 billion yuan in 2020-2022, up 35.89%/28.45%/27.63% year on year; net profit to mother of 1.00/1.32/175 million yuan, up 36.80%/32.30%/32.32% year on year, corresponding EPS of 0.39/0.52/0.69 yuan for 2020-2022, and corresponding PE of 38/28/22 times, respectively. Maintain a “buy” rating. Risk warning: Military spending growth falls short of expectations; Ministry of Civil Aviation's accessory maintenance business growth falls short of expectations; fund-raising project results fall short of expectations; COVID-19 has adversely affected the company's product delivery or daily operations.