Event: The company announced operating income of 1.46 billion yuan in the first half of 2018, up 12.1% year on year; net profit of 8421.65 yuan, up 229.46% year on year. Comments: In the first half of 2018, the company's various business development was stable, traditional steel wheel business revenue was 694 million yuan (up 3.29% year on year), automobile aftermarket business revenue was 546 million yuan (up 27.63% year on year), and high-end equipment manufacturing business achieved revenue of 147 million yuan. Overall, the growth of the company's business is sustainable, the traditional steel wheel business is steady, and the new business has great potential for growth. The company's gross margin for the first half of the year increased to 20.78%, of which 22.27% was in the second quarter. First, the gross profit margin of the aftermarket business in the first half of the year was 11.42%, an increase of 3.01% over the same period last year, and profitability gradually improved; secondly, the gross margin of high-end manufacturing equipment was as high as 48.81%, and volume in the first half of the year had a certain impact on the improvement of the company's profitability. Finally, in the context of rising raw materials, the gross margin of the steel wheel business fell by only 0.88%. Mainly, the company controlled raw material costs through group procurement and cooperated with Thyssenkrupp and Angang Steel to establish subsidiaries to further reduce raw material costs. At the same time, the steel wheel business is also the focus of the company's continuous development, and the company actively develops new products to improve the product structure of high-end products. Teaming up with Ali to deeply cultivate the automotive aftermarket. The complementary advantages of supply chain and traffic will make the development of the company's automotive after-sales service business more smooth. On August 22, Twilun Network Technology Co., Ltd., a wholly-owned subsidiary of the company, plans to cooperate closely with Alibaba and others to establish a new company. Alibaba is the largest shareholder, and the company is the second largest shareholder. The company split the auto superman business into two major segments: the auto service store chain and the auto parts supply chain. The supply chain sector will be merged into the new company, and the auto service store chain sector will cooperate with the new company at multiple levels to continue to increase the number of stores and provide better and better services. Profit forecast: We expect the company's net profit in 2018 and 2019 to be 293 million and 329 million respectively, with corresponding valuations of 25.5X and 22.8X. Risk warning: Aftermarket business progress falls short of expectations; downstream vehicle growth falls short of expectations.