The incident company announced that on September 8, Nanjing Aotejia received a nomination letter from German Volkswagen and was identified as a European electric compressor supplier for German Volkswagen's global NEV platform MEB. The review was once again ordered by the public, and performance growth is guaranteed. In June 2017, Nanjing Aotejia was identified as a supplier of electric compressors for FAW-Volkswagen's new energy vehicles. It will develop, produce and supply electric air conditioning compressors for 5 models of electric vehicles on its MQB platform. The announced company has also become a supplier to German VW and will develop, produce and supply electric air conditioning compressors for its MEB pure electric platform's SEAT, AUDI, and SKODA European plants. The MEB platform is a pure electric platform that Volkswagen has focused on building after actively transforming new energy sources. In the future, it will mainly produce a new generation of pure electric models on this platform. The model is expected to be highly competitive, the planned life cycle is 8 years, and global sales volume is expected to reach 6.5 million units. The FAW-Volkswagen MQB platform model is expected to be launched in 2018, and the German Volkswagen MEB platform model is expected to be launched by the end of 2019, which will successively increase the company's performance. The leading supplier of electric compressors continues to prove its competitive strength around the world. The company is currently the leading supplier of electric compressors. In 2016, electric compressors sold 142,500 units/ +14%, and the domestic market share reached 40%. It has successively received orders from Volkswagen and achieved a breakthrough in the core model platform from domestic to foreign core car companies, proving that the company's competitiveness is at the forefront of the international market. In addition, the company has also developed a new product, an electric heat pump compressor, which can effectively solve the heating function of the air conditioning of new energy vehicles and help greatly improve the vehicle's energy efficiency ratio and battery life. It is expected to become an industry standard. Currently, the company's technology is at the leading level in the world. It has been tested by many manufacturers, and mass production is expected to be achieved in 2018. Based on strength and endorsed by Volkswagen, against the backdrop of the accelerated pace of the NEV market, the company is likely to continue to receive supporting orders for new models from new car companies in the future. In the short term, it is expected that with the 2H17 new energy passenger car market continuing to pick up, and it is expected that sales of the company's electric air conditioning compressors will increase again, as it is expected that sales of the company's electric air conditioning compressors will increase again. Leading air conditioning compressor companies continue to explore international and after-sales markets, opening up the growth ceiling of traditional compressor business. As the largest manufacturer of automobile air conditioning compressors in China, Aotejia sold 7.745 million units of compressors in 2016, accounting for more than 60% of the domestic market share of independent brand passenger cars. At the same time, the company is also accelerating the internationalization process. In 2016 and 2017, it passed the PSA and German VW reviews respectively and became its supplier. High-quality customer resources contribute to the stable development of the company's business and increase its market influence. Currently, the company is also actively exploring emerging after-sales markets such as Southeast Asia, and is expected to quickly seize considerable market share with its cost performance advantage. With the continuous development of international and after-sales markets, the company's traditional compressor business will open up the traditional growth ceiling and continue to contribute to increased performance. In the first half of the year, the revenue of automobile air conditioning systems was 733 million yuan/ -13.49%. The year-on-year decline was mainly affected by the discontinuation of some old models and the volume of switching to new models. It is expected that with the gradual introduction of new models with automobile air conditioning systems, the company's revenue growth rate is expected to increase further. The investment proposal is that as the NEV market continues to pick up, the demonstration effect brought about by popular orders, and mass production of heat pump compressors, the company will continue to maintain its position as a supplier of high-quality electrified vehicle parts. The company's net profit is expected to increase by 26% and 27% respectively in 2017-2018, reaching 562 million yuan and 714 million yuan, and EPS of 0.18 yuan and 0.23 yuan respectively, corresponding to the current PE 22X and 18X. Maintain a “buy” rating. Risk warning: The process of developing new customers is slow, sales of new energy vehicles fall short of expectations, and mass production of new products is delayed.