Investment points: Profit forecast and investment rating: Wanxiang Group also has the world's most advanced electric vehicle battery company and electric vehicle manufacturer, and the group has promised to inject electric vehicle business into listed companies. We believe Wanxiang Qianchao is a very excellent target for new energy vehicles. It is predicted that the company's EPS for 2013-2015 will be 0.33, 0.42, and 0.47 yuan, respectively, +60%, +26%, and +11%, respectively. The average valuation of companies with the concept of new energy vehicles in 2014 is 39 times, the average valuation of the auto parts sector is 12 times, and the average valuation of the two is 25 times. We gave Wanxiang Money Chao a target price of 10.5 yuan based on 25 times PE, giving it an increase in holdings for the first time. Acquire Fesco and A123 to complete the layout of new energy vehicles and batteries: On February 16, Wanxiang Group completed the acquisition of the electric vehicle manufacturer Fisco, and in December 2012, Wanxiang acquired the battery manufacturer A123. A123 and Fisco can form a synergistic effect, improve Fesco's competitiveness in the electric vehicle field, and complete the layout of Wanxiang Group in the field of electric vehicles. Meanwhile, Wanxiang Group also obtained a vehicle production license (special vehicle) in 2013/10. Tesla caught fire again on February 14, or it may be driving the rise of A123's lithium iron phosphate technology route. The energy density of lithium iron phosphate is lower than that of Tesla's lithium cobalate, but A123 uses its nanoparticle technology to effectively increase the energy density of lithium iron phosphate, and the collaboration between Fesco and A123 may create another “Tesla.” The Group promised to inject electric vehicle business into Wanxiang Qianchao: On December 30, 2010, Wanxiang Qianchao announced a strategic framework agreement stating that when conditions are ripe for Wanxiang Electric Vehicle Company or when industrialization is completed and profits are stable, Wanxiang Group will transfer its shares in Wanxiang Electric Vehicle to Wanxiang Qianchao. Risk warning: The promotion of new energy vehicles has been blocked, and A123 and Fesco products cannot be industrialized.