Maintain the "overweight" rating and maintain the target price of 16.73 yuan. Diamond turbocharger accelerated volume, the company's investment income in associated enterprises in the first three quarters was 73 million yuan, an increase of 59%. Revenue from the company's main business fell 19% in the third quarter from a year earlier, showing a narrowing trend from a month earlier (down 32% in the second quarter from a year earlier). We predict that with the deepening of the national micro-stimulus policy, the company's main performance will stabilize and bottom out in the fourth quarter. Due to the decline in the diesel engine market more than we expected, the 2015-16EPS forecast was lowered to 0.10 0.17 (the original 0.42 yuan 0.53 yuan). Considering the average valuation of A-share energy-efficient vehicles in 2016, the target price will be maintained at 16.73 yuan.

With double benefits, the turbocharger will contribute to the main elasticity of 2016 performance. The draft for soliciting opinions on the management of average fuel consumption of ① passenger car companies is expected to heat up. According to the consultation draft disclosed by the first Electric Network, regulators will establish a fuel consumption points system to make it clear that punitive measures for negative points companies include paying for points, fines, restrictions on new products, and so on. As an important way to reduce weight, energy saving and emission reduction, turbocharging will accelerate the increase of permeability. The reduction of purchase tax for small-engine vehicles below 1.6L ② will further increase the proportion of small-engine vehicles, and turbochargers are the preferred way to improve the power performance of low-engine vehicles.

Catalyst: management measures for average fuel consumption of passenger vehicles issued

Risk hint: the continuous macroeconomic downturn has accelerated the decline of the company's main business.