Incident: On October 29, the company released its three-quarter report, stating that the first three quarters of 2016 achieved revenue of 1,999 billion yuan, a year-on-year increase of 29.19%, and net profit of 152 million yuan, a year-on-year increase of 124.58%. Net profit for the full year of 2016 is expected to reach $17—200 million, an increase of 88.12-121.32% over the previous year, which is generally in line with expectations. Using Zhongzhi New Energy to build the entire NEV industry chain: Vehicle end: The company hosts Zhongzhi New Energy. The company hosts Zhongzhi New Energy, and its subsidiaries Zhongzhi Yibu and Schutz Bus have full orders and contributed profits. Under the “back-up and rush” effect in the fourth quarter, it is expected to achieve a profit of 300 million yuan, triggering the injection of new energy vehicles into the company. Component side: The permanent magnet synchronous wheel-side motor independently developed by the subsidiary can reach a maximum power density of 10.4 kW/kg, and the weight is only 12 kg, leading the world in technology; the lightweight wheelside drive system can achieve low floor and wide passageways for its supporting electric buses, increasing passenger capacity by 20-30%. Currently, the first batch of domestic new energy buses with wheelside drive produced by Zhongzhi have been launched and operated in batches. Upstream expansion: On August 17, the company announced that it plans to cooperate with Guoxuan to rapidly build lithium battery production capacity. It is estimated that the total investment is 3 billion yuan, with a total production capacity of 1 billion Ah, of which the first phase will invest 1 billion yuan and produce 300 million Ah of power batteries per year. Downstream expansion: the acquisition of Fujia Leasing and the introduction of financial leasing to achieve the transformation from a product provider to a “integrated operation integrated solution provider”. The leading position in the traditional refrigeration business is stable, and the market share of condenser pipes has reached more than 50%: the company is a leading company in the refrigeration pipeline industry. The market share of refrigeration steel pipes has reached more than 30%, of which the market share of condenser pipes has reached more than 50%. The company provides customers with “zero distance” quality services through the establishment of subsidiaries around the home appliance industry base and large home appliance manufacturers. The company has established long-term and stable strategic partnerships with well-known home appliance companies including Haier, Hisense, Midea, Siemens, etc., and professional refrigeration equipment manufacturers such as Emerson. The company is actively promoting the promotion of aluminum alloy materials, actively covering domestic household, commercial and automotive air conditioning markets. It is also rapidly expanding overseas markets such as India, Brazil and North America, striving to complete the transformation from a product supplier to a complete solution provider for aluminum air conditioning pipelines. Investment suggestions: High quality products are protected, and expectations of Zhongzhi New Energy Injection Company are strengthened. The company's 2016-2018 EPS is expected to be 0.18, 0.26, and 0.31 yuan, respectively, and the corresponding PE is 55.0, 39.2, and 33.1 times, respectively. It continues to be given an “increase in holdings - A” rating, with a target price of 12 yuan for 6 months. Risk warning: policy risks, the promotion of new energy vehicles in China fell short of expectations, and market competition intensified