The company recently announced that it plans to acquire 35% of Jiangsu Kawei's shares for 1.05 billion yuan. Jiangsu Kawei is the largest automobile and body parts manufacturing group in the region. It is also the only self-branded automaker in Jiangsu Province. It has strong technical and market advantages, and is expected to contribute a good return on investment to the company in the future. The company now acquired 35% of Jiangsu Kawei's shares. In addition to the previous acquisition of 48% of Shenzhen Wuzhoulong's shares, the subscription for 20% of Changchun New Energy's shares, and the controlling shareholder Zhonghuan Investment acquired 75% of Germany's Stuttgart Electric Vehicle Co., Ltd., the layout of the NEV industry is more complete. Wuzhoulong has outstanding technical and market advantages in the field of new energy buses. Jiangsu Kawei has strong product and market advantages in fields such as new energy special vehicles, and is expected to make a difference in the field of new energy passenger vehicles. Through mergers and acquisitions, the company is expected to join forces for rapid development. We expect the earnings per share of Jingwei Co., Ltd. to be 0.97 yuan, 1.08 yuan and 1.19 yuan respectively in 2016 to 2018, giving the company 20 times the price-earnings ratio of 2017, and a reasonable target price of 21.60 yuan, maintaining the purchase rating. Key points supporting the rating were to acquire 35% of Jiangsu Kawei's shares and improve the layout of the NEV sector. Jiangsu Kawei is the only self-branded automaker in Jiangsu Province. Its main products include pickups, SUVs, motorhomes, fire engines, new energy models, etc. Among them, new energy models include pickups, SUVs, city buses, electric logistics vehicles, and Hummer electric vehicles. The Jiangsu Economic and Credit Commission issued a document in June 2015, agreeing to demonstrate the operation of Jiangsu Kawei's 33 NEV products in 13 cities including Nanjing, Jiangsu Province. In the context of local governments vigorously developing new energy vehicles, Kawei is expected to develop rapidly. New energy vehicles have a comprehensive layout, and the development prospects are promising. The company now acquired 35% of Jiangsu Kawei's shares. In addition to the previous acquisition of 48% of Shenzhen Wuzhoulong's shares, the subscription for 20% of Changchun New Energy's shares, and the controlling shareholder Zhonghuan Investment acquired 75% of Germany's Stuttgart Electric Vehicle Co., Ltd., the layout of the NEV industry is more complete. Wuzhoulong has outstanding technical and market advantages in the field of new energy buses. Jiangsu Kawei has strong product and market advantages in the field of new energy special vehicles, and is expected to make a difference in the field of new energy passenger vehicles. Through acquisitions and integration, the company is expected to join forces for rapid development in the field of new energy vehicles. New energy vehicles are the future development direction, and the company's improved layout will bring good returns. The main risks faced by the rating 1) the development of business such as interior and exterior parts fell short of expectations; 2) the development of the NEV business fell short of expectations. Valuation We estimate that the company's earnings per share in 2016 to 2018 will be 0.97 yuan, 1.08 yuan, and 1.19 yuan, respectively, giving the company 20 times the 2017 price-earnings ratio and a reasonable target price of 21.60 yuan, maintaining the purchase rating.