Incident: Jiangling Motors announced the August 2014 Production and Sales Report. In August, it recorded sales volume of 16,200 units, down 2.11% year on year and 26.5% month on month. During the period, the company's automobile production was 16,863 units, up 25.97% year on year and down 22.8% month on month. Comment: Sales volume in January and August declined year on year and month on month: In August 2014, the company's car sales volume was 16,200 units, down 2.1% year on year and 26.5% month on month. The total car sales volume for January-August was 171,000 units, up 19.4% year on year. There are three main reasons for the month-on-month decline in sales: 1. A week of high-temperature holidays in August; terminal inventory adjustments in February and August; and 3. Relocation of Yusheng's factory. Shipment strength increased in late August, and terminal inventories declined slightly. It is expected that they will return to normal next month. 2. The performance of light trucks and light vehicles stabilized: In August 2014, the Ford brand's light passenger sales volume was 5,037 units, up 11.8% from the same period last year, down 17.0% from the same period last year. Due to the relatively obvious low season characteristics of passenger cars in the first four weeks of August, OEMs needed to gradually break out of vacation time. Light truck sales fell 10.4% year on year to 5,922 units, down 37.1% month on month. The brief decline did not affect the general environment and benefited from the national IV policy. The JMC light truck maintained the high-end route and was one of the few products in the market that met national IV standards. Starting this year, the market share has continued to rise, and the advantages of light trucks are expected to continue. 3. Yusheng brand SUV sales declined due to relocation: In August 2014, Yusheng SUV sales were 1,102 units, up 60.9% year on year, down 57.20% month on month. Since last year's base was small, the year-on-year data had little reference significance; the main reason for the month-on-month decline was that the company took advantage of the high temperature holiday period to relocate its production plant, which is expected to resume next month. 4. The position of light trucks and light buses is stable, and new models of SUVs will be launched next year: The company's position in the light truck and light passenger market is stable, particularly benefiting from strict emission policies, and the company's light trucks are expected to continue to maintain good sales volume. In terms of SUVs, the Yusheng N330 will be gradually launched in 2015, and a 7-seater medium to large SUV in collaboration with Ford will also be launched. The model is positioned as a hardcore off-road, and there are few competitors at the same price, so it is expected to be favored by consumers. We forecast that the company's 2014-2016 EPS will be $2.31, $3.22, and $4.14, respectively. The last update report gave it a highly recommended rating.