Invest in Tianjin Songzheng to open up the industrial chain. The company announced that it plans to invest RMB 110 million in cash to participate in the capital increase of Tianjin Songzheng Electric Vehicle Technology Co., Ltd. (“Tianjin Songzheng”). After the capital increase is completed, the company will hold 10% of Tianjin Songzheng's shares. The company's participation in new energy motor companies has made the Group's NEV business (FISCO+A123) more complete and the industrial chain further extended. Tianjin Song is a world-renowned new energy motor company. Tianjin Songzheng is committed to becoming a world-class supplier of drive motor systems for new energy vehicles. It is a high-tech enterprise that independently develops and produces drive motor systems (motors+controllers) and powertrain systems for new energy vehicles, and has become one of the leading enterprises in this field. The main customers of Tianjin Songzheng include Yutong Bus, Xiamen Jinlong, Xiamen Golden Travel, Suzhou Jinlong, and Zhongtong Bus. The company is also a leading supplier of hybrid bus systems in China, and currently ranks second in the industry with a market share of around 25%. The company is one of the standard-setters for the domestic drive motor system and hybrid system industry. Its new energy bus drive motor system and hybrid system technology represent the highest level in the industry and have good growth potential. The growth rate of the main business is certain, and the growth rate is better than that of the industry. The company is one of the major independent production bases for automotive system components in China. It mainly produces automotive system parts and assemblies such as chassis and suspension systems, automobile braking systems, automobile transmission systems, wheel hub units, bearings, precision parts, and construction machinery parts. In particular, Wanxiangjie has a 65% domestic market share and a 10% global market share, making it a domestic standard setter. We expect the growth rate of the company's main business to be significantly better than that of the industry this year. The main reason is: weak demand has forced major joint ventures such as Volkswagen and Ford to control procurement costs. The company has quickly entered the global supply chain of mainstream car companies by speeding up qualification audits with new products after the breakthrough. For the first time, coverage gave an increase in holdings rating, with a target price of 21.15 yuan. The growth of the company's main business is determined, and it is actively transforming into a new energy vehicle industry. There is plenty of room for improvement in performance and valuation. We expect the company's revenue growth rates in 2015-2017 to be 10%, 15%, and 17.5%, respectively, and the net profit growth rate attributable to the parent company is 25.01%, 23.27%, and 21.10%, respectively. EPS is 0.3 yuan, 0.47 yuan, and 0.57 yuan respectively. For the first time, coverage gave an increase in holdings rating, with a target price of 21.15 yuan for 6 months, corresponding to 45 times PE in 2016. Risk warning: The growth rate of automobile sales is lower than expected, and the price of raw materials has risen sharply.