Ping An's view: The company's revenue continues to grow, benefiting from increased sales. The company achieved revenue of 3.32 billion yuan in January-June, an increase of 18.7% over the previous year, mainly due to the increase in sales volume in the current period. Among them, passenger cars achieved revenue of 1.26 billion yuan in the current period, an increase of 200 million yuan over the previous year, an increase of 19.1%; Huanghai Bus achieved revenue of 860 million yuan in the current period, an increase of 330 million yuan over the previous year, an increase of 62.3%. The company achieved net profit of 110 million yuan in January-June, an increase of 25.7% over the previous year. The main reason was the increase in gross profit margin and net interest rate due to the increase in sales scale. The sales growth rate of the automobile industry declined sharply in the first half of 2011, and the company still achieved relatively rapid growth. From January to June 2011, production and sales in the automotive industry increased by 2.48% and 3.35% respectively, and the growth rate declined significantly. The company takes active and effective measures to ensure growth: 1. Adjust the product structure and explore the middle and high-end markets. The launch of LNG energy-saving bus products and the new passenger car model Qisheng V3 has become a new growth point; 2. Actively expand overseas markets; 3. Strengthen cost control and reduce management costs. Actively laying out the NEV industry chain has broad prospects. In the first half of 2011, the company and CSRC Zhuzhou decided to cooperate to develop new energy buses; the Huanghai Mecca Electric Vehicle Company was established. Huanghai Mecca Electric Vehicle Company mainly develops and produces electric vehicles. The first phase has a planned production capacity of 60,000 vehicles per year, with a total scale of 300,000 vehicles, with a total investment of 1 billion yuan. These two investments can complement the company's traditional automobile and new energy technology advantages, enhance the company's competitiveness in the field of new energy vehicles, and promote the development of the new energy vehicle industry. Maintain a “Recommended” rating. The company has a certain amount of technology and market accumulation in the field of axle and bus manufacturing, and at the same time actively lays out the field of new energy vehicles. The company has good prospects for future growth. The company's EPS for 2011, 2012, and 2013 is expected to be 0.48, 0.62, and 0.84 yuan, respectively, and PE corresponding to the latest closing price is 15, 11, and 8 times, respectively. Maintain a “Recommended” rating. Risk warning: The NEV industry is progressing less than expected.