Key investment points: Transforming medicine, being flexible, and making a U-turn when the boat is small. The company has relatively few assets in the coal industry. The company currently has a market value of 6.7 billion yuan, net assets of 3 billion yuan, and total assets of 5 billion dollars. The company currently holds 50% of the shares of Honda in Xindazhou. Currently, Honda still has a large amount of cash. Since the motorcycle industry is originally a sunset industry, coal mine profits are declining, therefore, the company has taken the initiative to reduce investment plans in the motorcycle industry, while canceling investment plans in the yacht sector, saving a large amount of capital. In order to seize the current opportunity of relatively cheap industrial valuation, Xindazhou and Zhongyu Capital established the Zhongyu New Dazhou Medical Industry M&A Fund It is preparing to invest 3 billion yuan, to be set up in three phases, with 1 billion yuan each. Mr. Yu Bo, the manager of Zhongjue, has very deep experience and investment experience in the pharmaceutical industry, and the future direction of the company's development in the pharmaceutical industry has been determined. Bringing in industry leaders, good at industrial investment. The actual controller of the company originally started with motorcycles; in 2001, Honda was introduced as technical support; in 2006, when coal prices first rose, it bought coal mines; sold 49% of its shares to Zaozhuang Mining in 2012, introduced Zaozhuang Mining, and improved technology to improve technology, so that the company's profit bucked the trend when coal prices fell; in 2013, it participated separately in two major manufacturing companies, China Airlines Aircraft and San Lorenzo, and is expected to enjoy long-term growth premiums; in 2015, the yacht industry is expected to enjoy long-term growth premiums; It may be slow, and part of the yacht investment will be cancelled and transferred to pharmaceutical funds (the plan is 3 billion dollars, which is comparable to the company's current net assets. It is a huge investment project rare for the company recently, and the company is likely to transform into a pharmaceutical or professional investment company in the future). Management holds shares and is locked down for three years. In June 2014, the company's investors increased by 3.64 yuan/share, of which the management took 25 million shares. Currently, it is the company's third largest shareholder. As a private enterprise, we believe that the majority shareholders have a good strategic vision and management has sufficient motivation. At the same time, we have seen that the company has a very successful investment record in history, and the company's current investment direction is also very in line with the future development direction. The company's overall interests are consistent and promising, so it is likely that it will continue to grow bigger and stronger. The company is expected to have an EPS of 0.08, 0.10, and 0.15 yuan from 2015 to 2017, giving the company a target price of 9.5 yuan according to the segmented valuation. The company's net market ratio in 2015 was 2.3 times. In the face of general losses in the coal industry, coal prices in the company's location were relatively strong, and the motorcycle business provided the company with a very stable cash flow. The company's transformation investment has always been a leader in the industry. The establishment of a pharmaceutical fund will bring new profit growth points to the company. According to the industry PB segment of coal 1.3 times, motorcycles 6.2 times, yachts 4.4 times, aircraft, and 2 times pharmaceuticals in 2015, the company's value is 9.5 yuan, giving the company a target price of 9.5 yuan, giving the company a buying rating. Risk warning: The company has an excellent track record in industrial investment for a long time, but there have been cases where investment in the yacht business was last changed, so there is still uncertainty about setting up a pharmaceutical fund this time, and we need to be wary of the risk of further changes.