Incident: The company plans to transfer 5 shares to 15 shares to 1.5 yuan for every 10 shares, and the company issued an announcement. It plans to distribute 5 bonus shares for every 10 shares, a cash dividend of 1.5 yuan (tax included) for every 10 shares based on the total share capital of 120 million shares on December 31, 2015, and to transfer 15 shares for every 10 shares to all shareholders by 15 shares for every 10 shares. High turnover shows the company's confidence in future high growth. The company is the leading supplier of bus body CAN bus. The company is the leading supplier of bus body electronic control products in China. Its main business is bus body CAN bus products with the largest market share in the country, about 40%. The company currently provides support to more than 70 domestic bus manufacturers, including leading domestic bus companies such as Sanlong and One Connect. CAN bus products are mainly used for large and medium-sized buses, and the support ratio for new energy buses with a high degree of electrification is much higher than that of ordinary buses. At the same time, as the upgrade of emission regulations will bring about an upgrade in communication protocols, the proportion of supporting CAN bus products in ordinary buses will increase significantly. Also, the company's CAN bus products are gradually being equipped with truck models. With the increase in sales of large and medium-sized new energy buses, the upgrading of communication protocols brought about by the upgrade of emission regulations, and the extension of the company's products to trucks, there is some room for growth in the company's main business. The equity concentration is high and the balance ratio is low. The company has an epitaxial expansion. Mr. Chen Zhenhua, the largest shareholder of the company, holds 45.2% of the company's shares. Judging from the 2015 Q3 report, the company's balance ratio is only 8.1%, ranking 77th out of 78 companies in the SW parts industry (high to low), far below the average value of 35.9% and the median value of 35.8% in the SW auto parts industry. The company has a high concentration of equity and a low balance ratio, so there is a possibility of extended expansion through equity or bond financing in the future. The investment proposal does not take into account the dilution of share capital brought about by high turnover. We expect the company's EPS for 15-17 to be 0.69 yuan, 0.76 yuan, and 0.84 yuan, respectively. The company's main business, CAN bus products, has benefited from the increase in sales volume of large and medium-sized new energy buses and the upgrading of communication protocols brought about by the upgrade of emission regulations. The support rate for buses is expected to increase further. In addition, the company's products are gradually extended to trucks, so there is some room for growth. Furthermore, the company has the possibility of epitaxial expansion, giving it a “buy” rating. Risks suggest increased competition in the automotive industry; sales of the company's products fell short of expectations.