Key investment matters: Recently, we investigated Weidi Co., Ltd. and exchanged views with the company management on the current stage of business conditions and future development plans. Ping An's view: The CAN bus configuration ratio of new energy buses is significantly higher than that of traditional buses: the application of automobile CAN buses can greatly simplify the complexity of vehicle wiring harnesses and effectively integrate automobile electronic control systems. Since the power system of new energy buses is far more electrified than that of traditional buses, it is necessary to use CAN bus technology to achieve complete vehicle control. Currently, the CAN bus configuration ratio of new energy buses is close to 100%, which is significantly higher than that of traditional buses. With IPO fundraising to expand production capacity, CAN bus production and sales are expected to maintain high growth: as the penetration rate of new energy buses increases rapidly and traditional bus configurations become more abundant, the market demand for bus CAN buses has always been strong. Due to the tight production capacity of the company, the capacity utilization rate in 2014 exceeded 120%, and the growth rate of the company's operating income was limited to a certain extent. The company's IPO raised production capacity of 42,000 units, and the additional production capacity is 1.35 times the current production capacity, providing a guarantee for sales volume of CAN bus products. The CAN bus is the hub for vehicle data exchange. An automobile CAN bus is equivalent to a highway for big data of a vehicle, and almost all vehicle and component data is communicated on the CAN bus. Generally speaking, CAN buses can be used separately for high-speed CAN and low-speed CAN, respectively, for communication between power systems, safety system controllers, and communication between vehicle body control systems and instruments. The two buses are connected through a gateway. Profit forecast and investment advice: New energy is the development trend of the bus industry, and CAN buses will maintain strong demand. With the gradual release of fund-raising and investment production capacity, the company's main business is expected to maintain a good development trend. Considering the importance and special nature of CAN buses in automotive electronic control systems, there is a lot of room for future business development of the company. The 2015/2016/2017 EPS is expected to be 0.79 yuan/0.89 yuan/0.95 yuan respectively, covering the “recommended” rating for the first time. Risk warning: 1) Promotion of new energy buses fell short of expectations; 2) Market competition intensified.