Incident: Jiangling Motors announced the November 2014 production and sales report, which recorded sales volume of 28,766 units in January, up 23.5% year on year and 34.1% month on month. Production during the period was 29,197 units, up 18.5% year on year and 26.9% month on month. Comment: The cumulative sales volume continued to grow from January to November: In November 2014, the company's automobile sales volume was 28,766 units, up 23.5% year on year and 34.1% month on month. The cumulative sales volume for January-November was 245,000 units, an increase of 16.6% over the previous year. 2. Excellent performance of light buses and light trucks: In November 2014, the sales volume of Ford brand light buses was 7,617 units, up 12.4% year on year and 51.8% month on month. As of November, sales of light buses were 64,141 units, up 3.7% year on year. Looking at light trucks, sales volume in November was 12,648 units, up 67.9% year on year. From January to November, the cumulative sales volume of light trucks was 9,3,436 units, an increase of 28.0% over the previous year; light truck products continued to benefit from the implementation of emission policies, with excellent year-on-year and month-on-month performance. 3. Pickup truck sales declined, and the performance was still normal: sales of pickups in November were 6,400 units, up slightly from the previous month, down 8.1% year on year; cumulative sales volume from January to November was 63,116 units, which is basically the same as last year. 4. Yusheng SUV sales rebounded slightly: In November of this year, the company's sales volume of Yusheng SUVs was 2101 units, up 100 units month-on-month, and 4.2% year-on-year. Compared to the slump in previous months, sales continued to pick up from August. The cumulative sales volume for January-November was 24,337 vehicles, an increase of 116.5% over the previous year. 5. Summary and comments: We predict that the company's EPS in 2014-2016 will be 2.35 yuan, 3.22 yuan and 4.14 yuan respectively. Considering the company's shareholder background, stable past performance and high dividend rate, we maintain the company's target price of HK$40.0, equivalent to 9.9 times PE in 2015, and maintain a highly recommended rating.