Conclusion: The company's traditional main business is recovering from the bottom. High-end product development and overseas market layout are good. The certainty that high-speed rail brake pads have passed bench tests is very strong. They are expected to be industrialized in 16 years, contributing greatly to the company's performance flexibility. In addition to high-speed rail brake pads, the company is expected to build a high-speed rail parts platform, further opening up room for growth. We slightly raised the company's profit forecast for 2015-2016. The estimated earnings per share for 2014-2016 will be 0.14 yuan, 0.22 yuan, and 0.72 yuan, respectively, corresponding to dynamic price-earnings ratios of 113 times, 70 times, and 21 times, respectively. Although PE is currently high, after the industrialization of high-speed rail brake pads, the reasonable market value of the brake pad business alone is over 6 billion. In addition to traditional business, the overall reasonable market value should be over 7.5 billion yuan, with room for doubling. At the strategic level, the company is undergoing some profound changes. The business structure and organizational control system are undergoing changes. The future growth space and path of the industry are more clear, and we have upgraded the company's investment rating to “highly recommended.” Risk warning: the risk that the industrialization of high-speed rail brake pads will fall short of expectations