The incident company released its mid-year report for 20 years. H1 achieved revenue of 53.237 billion yuan, an increase of 0.53% over the previous year. Among them, Q2 achieved revenue of 38.532 billion yuan, an increase of 18.77% over the previous year and an increase of 162.04% over the previous year; H1 achieved net profit of 1,522 billion yuan, a year-on-year decrease of 17.57%. Among them, Q2 achieved net profit of 1,409 billion yuan, an increase of 29.92% over the previous year and an increase of 1140.73% over the previous year; H1 achieved net profit of 1,347 billion yuan after deducting non-return net profit, which is basically the same as the same period last year. Energy equipment: Ongoing orders have increased dramatically, and the wind power business has taken advantage of the “wind” to break the “wave” 2020 H1. The energy equipment sector achieved operating income of 19.292 billion yuan, up 2.3% from the previous year. The sector's wind power business grew rapidly; the sector's gross margin was 18.1%, an increase of 2.1 percentage points over the previous year, mainly due to changes in the business structure within the sector. 20H1 achieved additional orders of 108.84 billion yuan, an increase of 40.8% over the same period last year. Of the company's new orders, energy equipment accounted for 48.3%; new orders for nuclear power equipment were added by 2.69 billion yuan, an increase of 244.8%. In the field of wind power equipment business, the wind power industry's rush logic has not changed. As a leading road wind power manufacturer and a leading offshore fan company, the company's orders have increased dramatically. 2020H1 has added 33.96 billion yuan in wind power equipment orders, an increase of 505.8%; of these, offshore wind power orders are 24.91 billion yuan, an increase of 707.3%; and on-hand offshore wind power orders of 38.94 billion yuan, an increase of 126.9% over the end of the previous year. The volume and price of offshore wind power equipment have risen sharply, and we continue to be optimistic about performance growth. The company's application for the spin-off of Shanghai Electric Wind Power Group Co., Ltd., a subsidiary of the company, and listed on the Science and Technology Innovation Board has been accepted by the Shanghai Stock Exchange. The company continues to deepen its layout in the field of energy storage. Shanghai Electric Guoxuan won the energy storage system contract, and Yinghe Technology has achieved further improvement in the field of complete line manufacturing of lithium battery equipment. Additional orders for power grids and industrial intelligent power supply system solutions amounted to RMB 5.10 billion, an increase of 11.7% over the previous year. Industrial equipment: Elevator price adjustments seize market share. The gross margin of the sector declined in 2020 H1. The industrial equipment sector achieved revenue of 20.464 billion yuan, down 0.8% from the same period last year. The gross margin of the sector was 16.2%, a decrease of 2.2 percentage points from the previous year, mainly due to the impact of the epidemic, which led to a decline in overseas fastener business revenue. At the same time, the elevator business further increased its market share and adjusted its price strategy, and gross margin declined. Shanghai Mitsubishi Elevator has set up 89 direct branches and more than 360 maintenance service outlets across the country. In the field of intelligent manufacturing equipment, Germany's Baoerjie Company won the bid for China Aviation Industry Shen Fei Commercial Aircraft Company's Airbus A220 automatic riveting machine project. In the field of construction industrialization, the company added 740 million yuan in orders and 600 million yuan in ongoing orders. Integrated services: The sector's gross margin declined slightly, and automation engineering and service orders surged. Companies continued to develop in the fields of energy engineering and services, environmental engineering and services, automation engineering and services. In 2020 H1, the integrated services sector achieved revenue of 17.857 billion yuan, up 9.7% year on year, mainly due to rising revenue from energy engineering and services; the sector's gross margin was 20.4%, down 1.6 percentage points from the previous year, mainly due to changes in the gross margin structure of energy engineering services. The company added 18.17 billion yuan in energy engineering and service orders, a year-on-year decrease of 1.3%; the company added 4.45 billion yuan in environmental engineering and service orders, a year-on-year decrease of 38.7%; and new automation engineering and service orders of RMB 2.43 billion, an increase of 473.7% over the previous year. Profit forecast We expect the company's operating income in 2020-2022 to be 1541.28, 1682.25, and 173.373 billion yuan, respectively, up 20.88%, 9.15% and 3.06% year on year; net profit of 36.78, 4.0.82, and 4,533 billion yuan, up 5.06%, 10.97% and 11.06% year on year; corresponding EPS is 0.24, 0.27, 0.3 yuan, and corresponding PE is 22.86, 20.60, 18.55 times, maintaining “growth” Keep a “hold” rating. Risk warning: risk of commercial disputes in overseas business; wind power installed capacity falls short of expectations; risk of exchange rate fluctuations