Events:

On February 2, 2018, the company issued an announcement on the increase of company supervisors and senior executives' holdings of the company's shares. Zheng Weilong, the company's secretary and deputy general manager, increased his holdings by 197000 shares, with an average price of 3.79 yuan; Xu Boyuan, chairman of the company's board of supervisors and general manager of Nanjing Aotejia, increased his holdings by 2.372 million shares, with an average price of 3.76 yuan. He also said that Mr. Xu Boyuan and Mr. Zheng Weilong increased their holdings from the secondary market based on their confidence in the sustained and stable development of Aotejia in the future.

Comments:

We believe that since the end of the 17th, senior executives have increased their holdings 12 times, indicating confidence in the sustained and stable development of the company in the future, and do not rule out the possibility that senior executives will continue to increase their holdings.

Financial forecasts:

It is estimated that from 17 to 19, the EPS of the company will be 0.13,0.16,0.21 yuan respectively, the operating income will be 5.622 billion yuan, 6.296 billion yuan and 7.555 billion yuan respectively, and the net profit will be 419 million yuan, 5.11 yuan and 660 million yuan respectively. Maintain the "overweight" rating corresponding to the current stock price.

Risk Tips:

1. The risk that downstream production growth is not as fast as expected. The company's main products are automotive air-conditioning compressors and automotive air-conditioning systems, which are closely related to the output of independent brand passenger cars and new energy vehicles.

two。 The risk of rising prices of upstream raw materials. The main raw material of the company's products is aluminum, and the price of aluminum metal has increased in recent years, which has had an impact on the company's profitability.

3. The risk of overseas market expansion falling short of expectations.