New energy vehicle business has gradually become a strategic focus.

The company regards the new energy vehicle industry chain as an important development direction, which is mainly carried out in three aspects: 1) the company holds a 5.95% stake in Inbol Electric Co., Ltd., plus the management's equity, a total of 9.91%. Inbor's main motor controller has a high market share in medium and low-speed electric vehicles, and gradually reached a supply relationship with Shaanxi Tongjia, Lifan and other vehicle factories; 2) the company cooperated with Inbor to develop the "electric car drive integration" project, which has produced a prototype and started testing. 3) the company jointly set up an industrial investment fund with Guangzhou Nanyang New Energy Co., Ltd. And Guangdong Guangdong Yueke Innovation Venture Capital parent Fund Co., Ltd., with a total size of 300 million yuan and a down payment of 174 million yuan. Mainly for the field of power batteries.

From the layout of the company in the new energy vehicle industry, the company regards this direction as the key investment direction, and is expected to gradually show up in the proportion of total investment and total income in the future.

Profit forecast and investment rating: the company's EPS from 2016 to 2018 is expected to be 0.15,0.22,0.27 yuan respectively. The corresponding PE is 43 times, 29 times and 24 times respectively. We are optimistic about the development of the company in three-dimensional garages and new energy vehicles, and are optimistic about the expectation of state-owned enterprise reform, covering it for the first time and giving the company a "buy" rating.