1. Domestic leading enterprises of automotive springs. The company focuses on the spring manufacturing industry, mainly engaged in the research and development, production and sales of high-end spring products. At present, the products cover five categories: suspension system spring, power system spring, car body and interior spring, general spring and other spring products. It is a leading manufacturer of automotive springs in China.

2. Bind strong independent brands and enjoy the growth dividend of the industry. In recent years, relying on major customers Wandu, Li Enpai, as well as its own strong sales expansion, the company has entered a large number of independent brand enterprises, and is now the spring A corner supplier of many best-selling models in independent brand enterprises such as Great Wall, Changan, Geely, BAIC and so on. Since 2013, the market share of independent brands has been growing, returning to more than 40% of the market share, and the company also enjoys the dividend of the growth of its own brand industry.

3. in the short term, the spring of the suspension system increases. In 2016, the company's suspension system spring sales increased by 32% year-on-year, sales revenue increased by 29% year-on-year, and the market share increased from 2.8% to 4.5% in the past three years. The hot sales of Great Wall Harvard H6, Changan CS75, BAIC Yinxiang Magic Speed and other models have driven the rapid growth of the company's suspension system spring. In the future, the company's supply of suspension springs for major customers is expected to further grow and support more models.

Suspension spring has become the main focus of short-term company performance growth.

4. Long-term import substitution of high value-added springs such as power system. The working environment of power system spring is more extreme, and the requirements for spring performance and reliability are higher. At present, the supply is mainly controlled by overseas and joint venture parts enterprises. The company has core technology in spring materials and molding technology, and is expected to form import substitution and become a potential performance growth point in the future.

5. Profit forecast. We estimate that the company's net profit in 2017 and 2018 will be 0.56 yuan and 62 million yuan, and the current stock price will be valued at 71 and 64 times.

6, risk hint: the sales of own-brand cars are declining, and the demand for vehicle springs is not as expected!