The automotive fine chemicals business developed steadily and continued to maintain its leading position in the industry: in the first three quarters of 2017, the company achieved revenue of 1,942 billion yuan, an increase of 26.05% over the previous year; net profit attributable to shareholders of listed companies was 89 million yuan, a year-on-year decrease of 21.02%. Net profit attributable to shareholders of listed companies in 2017 is estimated to be 11,244.22 to 168.6634 million yuan, -20.00% to +20.00% over the same period last year. Among the company's main products, antifreeze, adhesives and brake fluids account for a relatively high proportion, accounting for about 20%, 25% and 10%, respectively. As a qualified supplier to downstream automakers, the company has formed a relationship of complementary advantages and division of labor and collaboration in upstream and downstream product support relationships. At present, the company has become a strategic supplier to more than 30 automakers, including well-known automakers such as FAW-Volkswagen, SAIC Volkswagen, BMW Brilliance, Beijing Mercedes-Benz, BYD, and Changan Ford, etc., with high customer stickiness and outstanding industry leadership. Entering the automotive aftermarket and opening up new profit growth poles: the company used the MB2B2C model to enter the automotive aftermarket, and established a national automobile terminal service chain network by integrating the advantages of original factory (MB) parts and the flat channel “German Union 2S Auto Service Flagship Store” (B) to deliver high-quality products and professional services to a wide range of users (C). The company currently has 407 regional service providers and more than 10,000 cooperative stores. Within the next three years, the company will grow the number of regional service providers to 1,000, authorized cooperative stores to reach 15,000, and cover more than 10 million terminal car owners. Future profits can be expected. Signing an order with NIO Auto, the new energy vehicle sector business helped the company take off: in June 2017, its subsidiary Shanghai Delian obtained the qualification of a NIO auto parts supplier and supplied automobile brake fluid for a model that NIO Auto expects to begin mass production in 2017. The company cooperated with BASF to develop products such as antifreeze and brake fluid for use in new energy vehicles. Currently, the company's R&D team also specializes in product research and development for new energy vehicles. In the future, it will fully benefit from in-depth cooperation with NEV companies and become a new growth point for the company. Profit forecast: The company is expected to achieve net profit of 133/1.84/234 million yuan in 2017-2019, corresponding to PE 34 times /25 times /19 times, respectively, covering the “increased holdings” rating for the first time. Risk warning: Market competition increases risk.