Investment highlights: The company announced its 2017 semi-annual report. In the first half of 2017, the company achieved revenue of 1,623 billion yuan, a year-on-year increase of 57.77%; net profit to mother was 99.1946 million yuan, an increase of 9.62% over the previous year. The gross profit margin of the main business was 23.67%, down 3.3 percentage points from the previous year. The rapid increase in the company's revenue was mainly due to the merger of Huitong Technology (consolidated in April 2016), and the robot itself's revenue grew rapidly. The overall gross margin declined, and the net profit growth rate was lower than revenue, mainly due to (1) and showing that the gross margin of Huitong's business was lower by about 15%. (2) The actual income tax rate was 28.09%, compared to 22.01% in the first half of 2016. Performance range for the first three quarters of 2017. The company also announced that the company's net profit changed from January to September 2017: -10% to 10%. The business of motion control systems and robotics products continues to expand. Period rate: The management rate has declined significantly. In the first half of 2017, the company's rate for the period was 15.64%, a year-on-year decrease of 3.28 percentage points. The management expense ratio was 9.01%, down 2.70 percentage points from the previous year. The sales expense ratio was 5.49%, down 0.90 percentage points from the previous year. The financial expense ratio was 1.14%, an increase of 0.32 percentage points over the previous year. Robotics and motion control products are growing rapidly. In the first half of 2017, the company's robot and motion control product revenue was 1,151 billion yuan, up 91.25% year on year; gross profit margin was 20.15%, down 1.75 percentage points year on year. Among them, Huitong Technology's revenue was 610 million yuan and net profit was 683.453 million yuan. The rapid increase in revenue stemmed from the merger of Huitong Technology, and the revenue of robots themselves grew rapidly. The company sold more than 1,000 units of robots in the first half of the year, and we expect to achieve the goal of doubling sales volume this year (800 units in 2016) as a probable event. Through the endogenous+epitaxial path, the company has formed a “key core component - ontology - engineering application - telematics” industry chain layout. The sales volume of the main unit continues to grow at a high rate. Engineering applications - In terms of intelligent flexible welding production lines for automobiles, the company's customers have accumulated a wealth of large-scale flexible robot production lines to many well-known automobile manufacturers and parts companies, including FAW Car, Great Wall Motor, BYD, SAIC Motor Group, Lifan Co., Ltd., Geely Automobile, GAC Mitsubishi, Gestamp, etc. Elevator control, energy saving and industrial transmission products are growing steadily. In the first half of 2017, the company's elevator control product revenue was 216 million yuan, up 7.21% year on year; gross profit margin was 30.08%, down 1.62 percentage points year on year. The company has formed stable cooperative relationships with customers such as Otis, KONE, TTM, ThyssenKrupp, Kangli, Guangri, etc. In the first half of 2017, the company's revenue from energy saving and industrial transmission products was 130 million yuan, up 16.07% year on year; gross profit margin was 48.41%, up 0.15 percentage points year on year. Profit forecasting and investment advice. We estimate that the company's net profit for 2017-2019 will be 182 million yuan, 227 million yuan, and 256 million yuan, respectively, corresponding to earnings of 0.29 yuan, 0.37 yuan, and 0.41 yuan per share. The 2017 valuation is 45X, which corresponds to a reasonable price of 13.05 yuan/share. “Buy” rating. Major uncertainties. Market competition risk.