Acquisition synergy benefits are realized, business or continuous volume. At present, the company has formed a body-in-white business department dominated by de Mecco and a material machinery transportation department dominated by DMW, with the leading strength of automotive system integration manufacturing, and the business volume will continue to increase in the future:

1) the market volume is huge, the demand for the transformation of automobile automatic manufacturing system production line continues, the fixed asset investment of Chinese and American automobile enterprises is growing, and the company's business is expected to continue to expand.

2) the competitive advantage is obvious, and the market share is gradually increasing. Compared with domestic enterprises, the company has the advantages of technology, experience and capital, and the price and service response advantages compared with foreign enterprises. The company is currently full of orders and is expected to expand into the mainstream car enterprises at home and abroad.

In the future, business integration will be further promoted and sales will continue to expand. The main logic is:

1) both Demecco and DMW have high-quality downstream vehicle factory customers, and the business merger strengthens the company's leading position in the automotive manufacturing automation system integration service industry.

2) DMW is mainly technical personnel, and the transfer of manufacturing capacity outsourcing business to China can significantly reduce costs and improve profitability.

3) with the integration of many years of management and operation experience of DMW, the management level and operation ability have been significantly improved. Based on the Internet-based intelligent manufacturing, steadily promote industrial chain mergers and acquisitions, the growth space is still huge. On the one hand, the automotive industry belongs to the key direction of the national 13th five-year Plan, and the automation level of manufacturing is high, and the demand for subsequent intelligent upgrades is greater, the company's leading product line will fully benefit; on the other hand, the company will continue to steadily promote extension expansion strategies such as mergers and acquisitions to achieve great-leap-forward development and enhance the overall competitiveness in intelligent factory integration business. Performance forecast and investment advice: considering the performance contribution of Demecco and DMW, it is estimated that the sales income in 2015-16 will be about 13 or 2 billion yuan, and the net profit will be 1.4 yuan and 220 million yuan. According to the market value of the suspension day, the corresponding PE is 91, 58 times, maintaining the "buy" rating.

Risk hint: sluggish sales lead to shrinking production capacity of car companies and reducing investment in automatic production lines.