Report summary: The company is mainly engaged in R&D, production and sales of automobile parts such as engine crankshafts, automobile clutches, and spiral bevel gears. The company is a major manufacturer of auto parts in China. It currently has an annual production capacity of 1,115 million forged engine steel crankshafts, 1.3 million sets of automobile clutch cover assemblies, and 150,000 sets of spiral bevel gears, and a precision forging project with an annual output of 100,000 tons in Jianfuda. The main product support range includes commercial vehicles, passenger vehicles and construction machinery. In the first half of 2014, the company's crankshaft and clutch business revenue accounted for 58% and 34% of total revenue, respectively. In the first half of 2014, the company's top five customers were Guangxi Yuchai Machinery, Dongfeng Cummins Engine, Liuzhou Wuling Liuji Power, SAIC Motor Iveco Hongyan Commercial Vehicle, and Dongfeng Commercial Vehicle, which accounted for 62.29% of total revenue. Since 2011, the company's top three customers have not changed, and the revenue share of the top five customers has declined steadily. Affected by the downturn in the commercial vehicle industry, the company's revenue has declined slightly in recent years. In 2013, it achieved operating income of 1,229 million yuan, an increase of 11.23% over the previous year, and realized net profit of 136 million yuan to the parent company, an increase of 5.15% over the previous year. In the first half of 2014, the company achieved operating income of 644 million yuan and net profit of 55 million yuan to the parent company. The total investment in this fund-raising project was 1.75 billion yuan, and the capital raised was 215 million yuan. The rest of the capital was funded by the company itself. Fund-raising projects include Guilin Crankshaft adding 250,000 new crankshaft technology transformation projects, Xiangfan Crankshafts adding 70,000 new crankshafts per year, Fuda Forging's precision forging construction engineering technology transformation project with an annual output of 100,000 tons, Guilin Gear's new annual output of 150,000 sets of spiral bevel gears, and the technical transformation project of Fuda Co., Ltd. Technology Center for Fuda Co., Ltd. The reasonable valuation range of the company's stock price is 4.65-5.94 yuan. Combining absolute valuation and relative valuation, the company's reasonable value range is 4.65-5.94 yuan, and the static price-earnings ratio corresponding to 2013 is 21.14-27.00 times. Risk warning: The risk that the commercial vehicle industry will continue to be sluggish; the risk that additional production capacity will be difficult to digest.