It was covered for the first time, and a “accumulation of holdings” rating was given. The KX3 is accurately positioned as a small SUV, winning by design advantages, and is predicted to sell more than 100,000 units in 2015. Net profit for 2014-15 is predicted to be 1.14 billion yuan and 1.44 billion yuan respectively, and corresponding earnings per share are 1.34 yuan and 1.69 yuan respectively. Ten times PE will be given in 2015, corresponding to the target price of 17 yuan. The small SUV market is the next hot spot in the automotive industry and will continue to develop rapidly. ① Supply side: In order to balance the SUV market with the average fuel consumption limit standards of the Ministry of Industry and Information Technology, car manufacturers have increased the launch of small SUV products with lower fuel consumption, and will continue to replace the market share of cars with low profitability at the same level. ② Demand side: The proportion of car purchases increased after the 80/90s. They prefer products with low total prices, low fuel consumption, and new designs. Small SUVs meet demand. Yueda Kia followed the trend and launched the KX3, highlighting competitiveness with design advantages. We judge that the launch of the KX3 is in line with the trend of miniaturization of SUVs, and Kia's outstanding design ability is a guarantee that the KX3 will win the younger consumer market. It is predicted that KX3 will sell 100,000 units throughout the year in 2015, increasing Yueda Kia's SUV sales by more than 10%, contributing significantly to performance. Catalyst: The rapid rise in KX3 sales volume on the market. Risk warning: Increased competition for small SUVs has led to a decline in gross margin; KX3's launch has been delayed.