1Q14 achieved an EPS of 0.29 yuan, an increase of 4.28% over the previous year. The 1Q14 company achieved operating income of 359 million yuan, a year-on-year decrease of 19.98%; net profit attributable to the parent company was 244 million yuan, an increase of 4.28% over the previous year, achieving an EPS of 0.29 yuan. In 1Q14, Dongfeng Yueda Kia's vehicle sales increased 13.35% year over year. Dongfeng Yueda Kia sold 156,000 vehicles in 1Q14, an increase of 13.35% over the previous year. Dongfeng Yueda Kia's third plant was put into operation in January, all production of the K3 has been transferred to the third plant, and the K3 hatchback version was officially launched in April. K4 is also expected to be officially launched in September, positioned between K3 and K5, and will be produced at three plants. Expressway profits are still declining, and will gradually stabilize in the future. The 1Q14 company achieved operating income of 359 million yuan, a year-on-year decline of 19.98%, while the company's gross margin fell 5.75 percentage points to 19.24% year on year. We believe that the main reason for the decline in the company's gross margin is the decline in expressway profits. The main business of the 1Q14 company is still in a state of loss. Non-operating income increased by 28.54 million yuan over the same period last year. The 1Q14 company received a government subsidy of 38.18 million yuan, which led to a year-on-year increase in the company's non-operating income of 28.54 million yuan. Maintain a “buy” rating for the company. We expect the company's fully diluted EPS for 2014-2016 to be 1.64 yuan, 1.93 yuan, and 2.18 yuan, respectively. Based on the closing price on April 25, the 2014-2016 dynamic price-earnings ratio will be 5.74 times, 4.88 times, and 4.32 times, respectively. The automobile business is the company's main source of profit, and it is expected to maintain steady growth in the future. We maintain our “buy” rating for the company, with a target price of 11.48 yuan, corresponding to 7 times PE in 2014. Risk warning: 1) the risk of price cuts due to intense competition in the automotive industry; 2) the risk of road tolls being affected by policy changes; 3) the textile and tractor industry continues to be sluggish.