Investment highlights: The company achieved operating income of 42.4766 million yuan in the first quarter, an increase of 13.4% over the previous year, and realized net profit attributable to the parent company of 3.149,900 yuan, an increase of 9.42% over the previous year. The performance growth rate was in line with expectations. There are three main reasons for the steady increase in the company's operating income. First, the prosperity of the machinery industry improved slightly in 2014, and the company's traditional main business will rise steadily along with the improvement in prosperity. Second, the company's traditional products gradually expanded to other fields. The agricultural machinery field achieved remarkable results in the first quarter, contributing to some performance. The future is worth looking forward to in other construction machinery models, other industries such as elevators, and commercial vehicles. Third, the company is gradually entering the construction machinery aftermarket, and smart warehouses and after-sales communication products have become new performance growth points. Traditional business is deeply tied to manufacturers, and the company has a first-mover advantage in the post-market informatization process. First, the company's market share in the excavator segment has reached 50%. The high market share is a high recognition of the company's technical level. Second, the company's products have successfully moved from the construction machinery aftermarket to the front-loading market, and customer stickiness has increased accordingly. Third, the strategic cooperation agreement is deeply tied to manufacturers. Zhonglian and XCMG stocks and incremental vehicle health data will be imported into the Tianze Data Center, and the company's vehicle health data accumulation will enter the fast track. Fourthly, having mastered the vehicle's operating data, you have a stepping stone to the aftermarket. When considering ensuring that service data related to the aftermarket can be interconnected with front-end data, manufacturers will give priority to further in-depth cooperation with the company in the aftermarket field. Once this first-mover advantage forms a scale effect, it will have extremely high barriers. The extension of the service link for manufacturers from a relatively single sales process to the after-sales process is a key move for the company to actively lay out the post-market. In the field of after-sales, on the one hand, it is to reach out to end users. By pushing vehicle data to users, users can meet their needs for vehicle location information and real-time health monitoring, thereby helping users to carry out detailed management of vehicles. On the other hand, the company develops new products such as smart warehouses and after-sales communication to help manufacturers improve the level of after-sales service, so that customers can understand the working conditions of vehicles, manage vehicles efficiently, and enjoy quick and convenient after-sales service from the original factory, and reduce losses in delayed construction periods due to component damage. Give an “increase in holdings” rating: We expect (considering mergers and acquisitions of business friends) that from 2014 to 2016, the company will achieve net profit attributable to the parent company of 45 million yuan, 88 million yuan, and 112 million yuan, respectively. EPS is 0.26 yuan, 0.51 yuan, and 0.65 yuan respectively, corresponding to 57 times, 29 times, and 22 times P/E. Risk warning: The prosperity of the construction machinery industry continues to decline; the company's new business expansion falls short of expectations.