Key investment points: Jointly with Zhongzhi, the whole industry chain layout New Energy Vehicle Company introduced Zhongzhi Capital as a strategic investor in 2014, and then realized the entire industry chain layout for new energy vehicles “parts manufacturing - vehicle manufacturing - aftermarket service” through epitaxial expansion. Backed by Zhongzhi Capital's strong capital integration capabilities, strong financial strength and abundant social resources, and the synergistic effects of the entire industry chain layout, the company is expected to transform into a new leader in new energy vehicles. Following the trend, the company has received more than 20 model announcements, currently has an annual production capacity of 25,000 vehicles, successfully built 6 production bases, and plans to build a diversified, grouped, and international NEV enterprise centered around Chengdu within three years, with ten holdings, ten participating companies, and ten cooperative companies. Currently, orders for 20,000 vehicles are in progress, including 14,000 electric logistics vehicles and 60,000 electric buses, and business volume increased significantly over the same period last year. More than 2,000 buses were sold in the first half of the year. It is expected that the company will release electric buses and electric logistics vehicles due to the “back-and-fill” effect in the fourth quarter. Expectations for the injection of new energy vehicles by Zhongzhi into listed companies can be expected to be fulfilled. Extend mergers and acquisitions of high-quality assets. Jingzhou New Power, Chengdu Lianteng, and Hefei Kano, which were acquired by the company to increase the performance of the parent company, are all assets owned by the majority shareholders. This injection into the platform of listed companies has obvious advantages in terms of integration, management, and appeal. The performance of the three companies has achieved steady growth, and is expected to continue to exceed the promised performance in the future. Fujia Leasing's financial leasing business has the characteristics of being asset-light and highly profitable. Currently, traditional business is the main business, and in the future, the business focusing on new energy vehicles will contribute incremental performance. The results for the first half of this year are already close to the results of last year's full year, and the full year is expected to double that of last year. The mergers and acquisitions of Sanden Corporation and Fujia Leasing will significantly boost the parent company's performance. Profit forecast and investment rating: Without considering the injection of new energy vehicles from Zhongzhi, we expect the company's EPS from 2016 to 2018 to be 0.2 yuan, 0.26 yuan, and 0.33 yuan, respectively, and the corresponding PE of 51 times, 40 times, and 31 times. We are optimistic about the company's overall NEV industry chain layout and solid performance. In particular, if Zhongzhe NEV is injected into listed companies in the future, it is worth looking forward to. On the one hand, it will make the company one of the purest NEV targets in the industry, and on the other hand, it will further enhance the company's performance, and on the other hand, it is expected to increase the company's valuation. First coverage, giving a “buy” rating. Risk warning: the uncertainty of the NEV subsidy policy; the promotion of new energy vehicles in Zhongzhi falls short of expectations, and the injection of new energy vehicles into listed companies is uncertain; market competition in the NEV parts business has intensified; and uncertain risks have been injected into the company's performance promises.