The company first announced the hydrogen energy sector and integrated resources into the core link of the hydrogen energy industry chain, which is expected to benefit from the explosion in the domestic fuel cell industry and open up room for growth. Considering that the price of the company's main motor products is under pressure, the company's 2018-2020 EPS forecast was lowered to 0.16/0.23/0.27 yuan. The current stock price corresponding to PE is 27/19/16 times, maintaining the “buy” rating, and the target price is 5.7 yuan. Strategic transformation into the powertrain of new energy vehicles. The company started with the traditional home appliance motor business and entered the NEV drive motor business in 2009. Taking advantage of the high growth trend of new energy vehicles, the company has successively acquired Wuhu Genolis, Beijing Petra, the US Patley, and Shanghai Electric Drive, becoming the first tier of domestic NEV drive motors and electronic control companies, with a market share of over 20% in 2018. The company began to lay out the fuel cell field in 2016, thereby achieving the three-electric power assembly layout of “battery, motor, and electronic control” in the field of new energy vehicles. Actively integrate resources to vigorously promote the fuel cell industry. The company entered the field of hydrogen energy, subscribed for 9.9% shares in Ballard, a global hydrogen fuel cell leader, in 2016, obtained Ballard's hydrogen fuel cell technology license in 2017, quickly entered the midstream link of the hydrogen energy industry chain, and supplied fuel cells to customers such as Dongfeng Special Vehicle, Zhongtong Bus, SAIC Chase, Beiqi Foton, and Foshan Feichi. In 2018, the company signed a 6.5 million euro investment agreement with HT, a global leader in hydrogen storage and transportation technology, to lay out the hydrogen energy equipment market, extend the business layout to the upstream of fuel cells, and position the core link of the hydrogen energy industry chain. Strong policy support accelerates entry into an upward channel. At the “China Electric Vehicle 100 People's Conference Forum” in January 2019, many industry experts expressed their optimism and earnest expectations for the fuel cell industry; Shenzhen, Foshan and many other local governments have successively introduced fuel cell-related promotion policies. Under the support of subsidy policies and local projects, all links in the fuel cell industry chain have gradually broken through bottlenecks in localization technology, which is expected to begin a period of booming growth. The company is expected to benefit profoundly by taking advantage of the first publishing bureau to actively position the core components of the fuel cell. Risk factors: The development of the NEV market falls short of expectations, the company's business expansion falls short of expectations, etc. Investment suggestion: The company is positioned as a core link in the hydrogen energy industry chain and is expected to benefit from the explosion in the fuel cell industry to open up room for growth. Considering that the price of the company's main motor products is under pressure, the company's 2018-2020 EPS forecast was lowered to 0.16/0.23/0.27 yuan (the original forecast value was 0.21/0.26/0.35 yuan). The current stock price corresponds to PE 27/19/16 times, and the target price of 5.70 yuan for 25 times PE in 2019, maintaining the “buy” rating.