Car sales have soared. From January to July 2006, the company sold 19358 light trucks, an increase of 42.9% over the same period last year. Brilliance Gold Cup, which is 49% owned by the company, sold 33618 cars, an increase of 377.3% over the same period last year. Among them, the sales of the newly launched model Junjie is 11987, and the market is in short supply.

During the period of brand reconstruction, it is difficult to increase profits in the short term. The company's strategy: 1. Increase sales and expand market share through cost-effective cars, so that the company can completely get out of the impact of the "Yang Rong incident"; 2. Reshape the Chinese brand, so that consumers change the impression of poor quality of Chinese cars. At present, the profit of the company's bicycle is very thin, and the increase of sales volume is difficult to bring the increase of profit. As of July, brilliance Gold Cup lost 386 million.

There is little suspense about turning around this year. The company will be delisted if it continues to lose money this year. We believe that the company has passed the most difficult period and there is little suspense about turning around this year.

It will take time for Huachen to reorganize. The actual control of the company is brilliance Group, in which there are highly profitable assets such as brilliance BMW. However, at present, the company is still in the turnaround stage, the car industry has not entered a rising cycle, brilliance system restructuring will not be included in the agenda for the time being.

Give a neutral rating. The company will reverse its losses this year, coupled with a surge in car sales, which will give the company a greater trading opportunity in the stock market.

However, with the current asset structure and profitability of the company, it does not have great investment value. Give a neutral rating.