According to a report published by Credit Suisse, Xinchen Dynamics (3.34, -0.10, -2.91%) (01148.HK) was authorized by BMW to assemble Prince engines, and Xinchen must pay 9.72 million euros in early license fees to BMW. The bank believes that this authorization can help ease the market's concerns about Xinchen's long-term development, so it raised its target price from 5 yuan to 5.2 yuan, which is equivalent to 15 times the price-earnings ratio, and reiterated its “outperform the market” rating. The bank expects Xinchen Dynamics to begin production of Prince engines in 2017, and is expected to sell them to third party automakers and BMW for after-sales use. It predicts that sales of Prince engines in 2017 will be 40,000 units. Credit Suisse believes that this cooperation marks a new stage of strategic cooperation between Xinchen and BMW, and is more confident about the future development of BMW cars between the two sides, such as producing more parts locally.