1H15 results largely in line。 In 1H15, revenue rose 8.01% YoY to Rmb1.922bn while netprofit attributable to shareholders climbed 25.38% YoY toRmb302mn, or EPS of Rmb0.36, in line with expectation. Revenue from industrial businesses increased 24% YoY. Revenue from medicine business rose 42% mainly contributedby the three IPO-funded projects in Taizhou base; pesticidebusiness went up 26%; fine & functional chemicals dropped15% due to the declining prices and falling shipment at Dezhoubase. The three major expenses rose 19% YoY:sales/financial expenses -13%/16% YoY due to lower freightrate and incremental FX income); G&A expenses +23% YoY dueto higher equity incentive cost and employees’ paycheck. Trends to watch。 Better internationalization to boost BU construction. Lianhe aims to build an international professional operation andmanagement team and will seek global M&A opportunities. Thebuilding of excellent operation & management system shouldhelp enhance its capability in production management andsupply chain management. Construction of three bases in 2015. Yancheng and Dezhoubases are likely to acquire national qualification for pesticideproduction. Earnings revisions。 The company expected 1~3Q15 net profit attributable toshareholder to rise 10~30% YoY. Maintain 2015/16e EPSforecast at Rmb0.84/Rmb1.09. Valuation and recommendation。 The stock is trading at 26x/20x 2015/16e P/E. Keep TP atRmb26.88. Maintain BUY. Risks。 Project construction and operation miss expectation.