In the first three quarters, the company realized operating income of 491 million yuan, an increase of 2.41% over the same period last year; the net profit returned to the parent company was 27.73 million yuan, an increase of 13.49% over the same period last year; and the net profit after deducting non-profit was 25.82 million yuan, an increase of 22.23% over the same period last year. Although the commercial vehicle industry remains in the doldrums, truck sales fell 8.40% year-on-year during the reporting period, but the company's main supporting heavy truck performance is relatively eye-catching, up 2.65% year-on-year, so the company's revenue has not been greatly affected.

The growth of net profit is mainly due to the implementation of comprehensive lean management, strengthening the management of costs and the control of expenses. In the case of revenue growth of only 2.41%, the gross profit margin of sales was 31.51%, up 3.52 percentage points from a year earlier.

During the reporting period, the company actively marketed, opened up the market, increased market share, improved product quality and reduced external claims and quality losses.

In the third quarter, the company realized operating income of 142 million yuan, down 4.42% from the same period last year, and realized a net profit of 11.97 million yuan, down 36.42% from the same period last year. It is worth noting that since the beginning of this year, the growth rate of performance has declined quarter by quarter, to 255.51%, 35.94% and-36.42%, respectively.

We forecast that the company's earnings per share from 2014 to 2016 will be 0.25,0.30,0.34 yuan respectively, giving the company a "neutral" investment rating.

The investment risk lies in the risk that the macro-economy will continue to decline sharply, the risk of policy adjustment of the national automobile industry, the continued downturn of the commercial vehicle industry, and the risk of excessive short-term stock price increases.