Revenue increased 15.17%, net profit increased 147.05%, and the company released the 2017 mid-year report, which is basically in line with expectations: it achieved operating income of 133 million yuan, an increase of 15.17%; net profit of 6.1093 million yuan, an increase of 147.05%; net profit after deduction of 6.183,900 yuan, an increase of 32.39%; and basic EPS of 0.066 yuan, up 146.84% year on year. The gross profit margin is 50.35%/(+4.62pct), and the comprehensive expense ratio is 41.2%/(+2.42pct). Increased marketing promotion led to revenue growth in passenger flow, and management output successfully increased performance. The company's revenue increased 15.17% in the first half of the year. The main reasons include: 1) the company vigorously promoted various marketing and promotion methods, passenger traffic and sales revenue both increased, and main business revenue was 120 million yuan (+8.74%); 2) the technology export project in Huai'an increased revenue in the current period, and other businesses achieved revenue of 124.269 million yuan (+169.94%). In terms of gross margin, the gross profit margin of main income was 47.88% (+2.74pct); the gross profit margin of other income was 74.26% (+ 14.41pct), driving an increase of 4.62 pct in overall gross margin. In terms of expenses, the comprehensive fee rate is 41.2%/(+2.42pct), and the subsidiaries Ogilvy Investment, Moby World (Chun'an), and Xi'an Shengya Moby are included in the report. The management fee rate is 26.60%/(+4.17pct); due to the increase in average loan size, the financial cost rate is 5.49%/(+1.65pct); and the sales expenses rate is 9.11% (-3.14pct). The fixed increase was terminated, and the offsite replication project was progressing in an orderly manner. The company's original plan to raise 790 million yuan through fixed increases for the construction of the Zhenjiang Magic Ocean Park project was terminated due to the impact of new refinancing regulations, etc. The company promised to gradually invest raised funds into this fund-raising project. After the project was completed and put into operation, it was originally expected to have revenue of 434 million, net profit of 160 million yuan, and the company's holding 70% of the company's shares. If the project progresses smoothly, it is still possible to increase performance. At the same time, the company's offsite expansion projects are still progressing in an orderly manner: 1) This year, agreements such as the “Yingkou Bayuquan Moby World Coastal City Project”, “Shengya Ocean Science and Technology Museum · Whale World Project”, and the “Chun'an Beluga Qiandao Lake Waterfront City Project” have been signed one after another. Offsite projects have blossomed a lot; 2) The company plans to initiate the establishment of the Dalian Shengya Panjing Fund (plans to raise 3 billion dollars, the company's investment of 25 million), and expansion is expected; 3) This year, Wuhu Xinhualian White Whale Ocean Park has successfully opened its doors; Moby Dick Water World is also operating according to plan, and export projects are managed in an orderly manner. The “Big Moby Dick Project” is being carried out steadily, awaiting the release of performance, and maintaining the company's “increased holdings” rating. The company is steadily advancing the “Big Moby Dick Plan” and overall strategy implementation. The business layout covers the Yangtze River Delta region and popular tourist destinations such as Xiamen and Sanya. The product structure continues to improve, and expansion is worth looking forward to. Considering factors such as the implementation of the company's extension projects falling slightly behind expectations and the possible increase in financial expenses due to capital requirements for new projects, we lowered our profit forecast. It is estimated that 2017/18/19 net profit of 0.47/0.55/0.61 billion yuan, basic EPS is 0.52/0.59/0.66 yuan, corresponding to the current stock price of PE48.81/42.36/38.03, corresponding to the current stock price of PE48.81/42.36/38.03. The absolute valuation level is high, considering that the prosperity of the domestic theme park industry continues to improve. The company has significant advantages in the ocean park segment for many years. Long-term optimism and maintenance “Excess holdings” rating. Risk warning: There is uncertainty about the implementation of agreements related to offsite projects, and market competition is becoming increasingly fierce.