Incident: The actual controller of the company plans to increase his holdings of the company's stock company. Li Yi, the chairman and actual controller of the company, plans to increase his holdings by no more than 1.05 million shares within the next 12 months, that is, the proposed increase ratio will not exceed 1% of the current total share capital, and promised not to reduce his holdings during the increase period, 6 months after the increase in holdings is completed, and within the statutory period. Currently, Li Yi controls a total of 50.75% of the company's shares. The company's inflection point was evident. The increase in actual controller holdings showed confidence in the company's future development. The company's performance doubled in the fourth quarter of '16. Due to increased sales of new products such as automatic transmission oil pumps, the company's performance increased by 9.3%-20.8% in the first quarter of '17. Performance has been growing for two consecutive quarters, and the company's inflection point is further evident. The actual controller of the company now plans to increase its shareholding through its own capital or self-financing, which shows confidence in the company's future development and is also conducive to boosting investor confidence. With a multi-field layout, new businesses are yet to be implemented and blossomed. Under the major trend of electrification, the company is actively upgrading and transforming products to meet changes in product demand. We believe that the company's biggest focus in the future is electric pumps. Electric pumps are mechatronic hydraulic integrated products with high technical barriers, and the double increase in penetration rate and value in the future provides them with broad development space. We estimate that in the future, the company will lay out various fields such as automatic transmissions and braking systems through the electric pump business, and various new businesses will gradually be implemented and blossomed. In addition, the company plans to acquire CCI, a German supplier of noise reduction and insulation systems, which will help diversify products, enhance the company's performance, and expand the global market. The investment proposal company used to be a leading automobile steering pump company. Profitability has remained at a high level for a long time, and the stock incentive plan is conducive to its long-term development. The company has a number of automotive electronic technology reserves. Upgraded product projects such as electro-hydraulic pumps are progressing smoothly, and internal generation is high. With the acquisition of CCI, the company will develop endogenous and epitaxial two-wheel drive. Regardless of the impact of future CCI acquisitions, we expect the company's EPS for 16-18 to be 1.16, 1.33, and 1.87 yuan, maintaining a “buy” rating. Risks suggest that the main business is growing less than expected; the expansion of new projects falls short of expectations; and the risk of integration after the acquisition of CCI.