The establishment of a wholly-owned subsidiary of Wuxi Yilong has been completed, and the second main business has officially set sail. China Southern Bearing announced on September 7 that the wholly owned subsidiary of Wuxi Pteroson has recently completed the procedures for setting up business and commercial operations. The company has a registered capital of 100 million yuan. In the future, it will mainly engage in aircraft tire inspection services, self-operate and agent import and export business for various products and technologies, and research and development and sales of automobile tires. This marks the official start of the company's second main business. Aircraft tire remanufacturing is cost-effective. The five-year market size is expected to exceed 7 billion, and tire remanufacturing is comparable in safety and durability to new tires, and can reduce the amount of rubber used by 60%-70%. The cost performance advantage spurs broad market demand. Tires are the main consumables for aircraft. On average, the tires of civil aviation aircraft are replaced about 15 times a year. Based on official fleet data, we predict that demand for aircraft tires will exceed 600,000 by 2020, the market size is expected to exceed 7 billion yuan per year, and the random expansion of the fleet size will continue to expand. Localization of aircraft tire remanufacturing is speeding up, and Wuxi Pterosaurs is expected to release domestic aircraft tire remanufacturers in smaller sizes, and localization is expected to accelerate in the future: (1) low cost advantages stir up the monopoly pattern; (2) aircraft tire remanufacturing is also a missing field of tire refurbishment and aviation self-production, benefiting from multiple policy dividends. The Wuxi Pterosaur has successively obtained maintenance qualifications for civil aviation and the four major airlines, and has obtained maintenance qualifications for most parts of Boeing. The company will join hands with Southern Bearing to develop a nationwide production capacity layout. It is estimated that by 2018, the production capacity of aircraft tires will reach 100,000 tires and 1 million automobile tires. Investment advice: Buy-A investment rating, target price of $20 for 6 months. We expect the company's 2016-2018 EPS to be 0.2, 0.29, and 0.35 yuan respectively, maintaining a buy-A investment rating, with a target price of 20 yuan for 6 months. Risk warning: The main business has seriously declined, and the expansion of the second main business has fallen short of expectations.