Key investment points The company achieved revenue of 1.94 billion yuan in the first half of 2016, an increase of 3.7% over the previous year, with steady growth. The main business as a whole grew steadily. Among them, gas is the core business. Against the backdrop of declining non-residential climate, gas sales revenue decreased by 6.5% year on year, but gross margin increased 9.4 percentage points on the cost side. Combined with the real estate business, related business revenue increased 269.9% year on year due to confirmed revenue from Zhongbei Shengye's delivery of the Longchiwan project. In addition, construction revenue decreased by 34.7% year on year, automobile sales revenue decreased 16.2% year on year, and tourism business revenue increased by 22.2% year on year. Thanks to the above major business contributions, the company achieved revenue of 1.94 billion yuan in the first half of the year, an increase of 3.7% over the previous year. The growth on the cost side and the revenue side basically converged. The reduction in financial expenses and non-operating income led to a 20.8% increase on the profit side, corresponding to an EPS of 0.21 yuan. As interest rates on bank loans declined, the company's financial expenses fell by 47.1% year on year to 11.982 million yuan. However, there were many non-recurring profit and loss projects in the same period last year, which had a certain impact on the profit side: 1) Due to the impact of disposal profit and loss of the Tangshan power plant in the same period last year, this year's non-operating income fell 52.1% year on year to 21.774 million yuan; 2) Investment income in the first half of the year changed due to the sale of Tianda Investment in the same period last year (down 30.5% year on year to 36.181,000 yuan). Overall, in the first half of the year, the company achieved net profit of 120 million yuan (+20.8%) and net profit after deducting non-net profit of 110 million yuan (-7.1%). The online car-hailing method was introduced, and the company took the lead in seeking changes in its layout at the beginning of the year. With the introduction of online car-hailing measures last week, recognition of the positioning of online car-hailing, and clarification of the entry threshold for online car-hailing, we believe that in the long run, it will benefit the healthy development of the taxi industry, encourage traditional taxis to embrace the new model more, and better improve service levels. The company has taken the lead in related fields, and the online car-hailing operation platform established in a joint venture with Shenzhen Didi New Energy Vehicle Rental Co., Ltd. (a joint venture between BYD and Didi Chuxing) at the beginning of the year is operating steadily. It is expected that with the further planning of the industry, the company will actively explore the innovation and upgrading of traditional taxi operation and management models, and use innovative thinking to plan the integrated development of taxis, online car-hailing and other businesses. It is a major platform for public utilities, and the positioning of energy+passenger transport is basically clear. As the company has successfully transformed from a passenger transport company to a new main gas business, and the company has changed its name to Nanjing Public Service, it can be seen that the direction of the company's positioning as a major public utility platform has been clarified. It is expected that with the support of steady growth in the new gas industry, the company will actively expand in the direction of energy+passenger transportation in the future. Currently, the company's taxi industry has 2,363 operating licenses (including 300 electric taxis from Nanjing Hexi New Energy Passenger Transport Service Co., Ltd.). The leading position is obvious, and the upstream and downstream expansion capabilities are strong. Risk warning. 1. Macroeconomic decline; 2. Gas price fluctuations; 3. Transformation fell short of expectations. Earnings forecasts, valuations and investment ratings. Driven by steady growth in the new gas industry and confirmation of real estate projects, the company achieved EPS of 0.21 yuan in the first half of the year, in line with expectations. Considering factors such as the stability of gas as the company's main business, and the limited impact of the introduction of online car-hailing methods on the company, which is beneficial to the long-term development of the industry, etc., the EPS forecast for the company for 2016/2017/2018 was 0.44/0.47/0.50 yuan, corresponding to PE 22/20/19 times, maintaining the “buy” rating.