The overall year 2015 is in line with expectations. The company's net profit belonging to shareholders of listed companies in 2015 was 103 million yuan, an increase of about 913.92% compared with the same period last year, basically in line with expectations.

The logic of the 2015 performance reversal has been verified, private offerings have passed, and the maximum uncertainty has been eliminated. We believe that the company will achieve 500 million net profit in 2016, and the performance of dawning headquarters will continue to grow rapidly. it is expected that the sales of about 7000 new energy vehicles (including 2000 passenger cars and 5000 logistics vehicles) will be realized in 2016. according to the net profit of 40, 000 yuan for passenger cars and 10, 000 yuan for logistics vehicles, new energy will contribute 130 million yuan to the operating net profit of the company In addition, dawning axles contribute about 70 million yuan to the company's net profit every year, minus the possible loss of 50 million of traditional passenger cars, dawning headquarters is expected to earn about 150 million of the operating net profit. In the future, Yoneng will continue to exceed expectations in the case of industry wind + market recognition + order adequacy + scale effect. By 2020, the national goal of producing 2 million vehicles a year and owning 5 million new energy vehicles is expected to bring an annualized growth of 60 per cent to the industry and will continue to bring rapid development opportunities for key component manufacturers. At the same time, we expect Yineng to rely on its many years of solid cooperation experience with vehicle factories and battery factories, on the basis of maintaining stable old customers, we will continue to open up major customers such as BAIC, GAC, Jinlong and so on. no matter in the passenger car, logistics vehicle or bus field will get different orders, and further sufficient orders will make the scale effect more prominent, and the gross profit margin will have higher room for improvement. All in all, we expect to achieve 240 million net profit in 2016, of which BMS is expected to achieve revenue of 800 to 1 billion yuan, bringing a profit of about 160 million. When the order volume of other bus companies except dawning headquarters is 0, pack is expected to achieve about 1 billion revenue and bring about 80 million profit. Given that the company will hold an 80% stake in Yineng after the rights issue, it is expected that Yineng will contribute about 200 million to dawning's net profit. In addition, about 150 million yuan after non-recurrent profit and loss tax, it is predicted that the company will achieve a total net profit of 500 million yuan in 2016.

We believe that the future transformation of the company will continue, orders, cooperation, mergers and acquisitions will be landed one after another, strongly optimistic about the future development prospects of the company. Maintain the profit forecast and keep buying. From 2016 to 2018, we expect revenue of 7.443 billion yuan, 9.065 billion yuan and 10.714 billion yuan respectively, corresponding net profit of 501 million yuan, 594 million yuan and 678 million yuan respectively, and corresponding PE of 16 times, 14 times and 12 times. After considering the additional issuance, the EPS is 0.71,0.84 and 0.96 yuan respectively, and the corresponding PE is 19 times, 16 times and 15 times respectively. According to the segment valuation method, with reference to the valuation of comparable companies, the valuation of dawning headquarters is 20 times and that of Yineng Electronics is 40 times. The target market value is 15 billion, corresponding to the target price of 21.40 yuan.