The parking industry was laid out through capital operations to create a dual-core parking equipment layout; the company acquired and reorganized Flextron Automation in November 2015, gradually shifting its focus to new industries such as parking equipment. Parking equipment business revenue increased from 44.56 million yuan in 2015 to 621 million yuan in 2018. In 2017, the company acquired Shandong Tianchen, creating a north-south dual-core pattern of Nanyou Weichuang Automation and Beiyou Tianchen Intelligent, consolidating the company's leading position in the industry. In April 2019, the company announced a fixed growth plan. It plans to build two production bases in Dongguan and Xuzhou to push the company to break through production capacity bottlenecks and lay the foundation for the company's long-term rapid development. The demand plus policy is two-wheel drive, and the prospects for the parking equipment market are promising: on the demand side, domestic car ownership continues to grow rapidly, and the demand for parking spaces is expanding accordingly. It is estimated that by 2019, the demand for parking spaces may reach 330 million, and there is a huge gap in the supply of parking spaces. In terms of policy, around 2016, the country intensively introduced a series of relevant policies to support the construction of urban parking lots, and various cities also introduced corresponding plans to promote the construction of urban parking lots. With the support of policies and plans, the mechanical parking equipment industry may maintain long-term prosperity. The total sales volume of the domestic mechanical parking equipment industry is expected to reach 235 billion yuan in 2024. Promote the integrated business of parking lot investment, construction and operation; the company uses “intelligent manufacturing+parking resources+Internet” as a medium- to long-term strategy to promote integrated parking lot investment, construction and operation business. In the first half of 2019, the company acquired Changan Parking through the Industrial Fund as an opportunity to build the investment and operation sector of Wuyang Parking. The company's Kunming Hospital BOT project has been completed and put into operation, and parking projects in cities such as Nanping, Nanchang, Kunming, Shenyang, and Fuzhou have also been launched one after another. In addition, the company plans to invest 280 million yuan to build a smart parking system platform to promote the company's “intelligent manufacturing+parking resources+Internet” development strategy for the entire industry chain. Profit forecast and investment recommendations: We estimate that the company's operating income for 2019-2021 will be 1,352 billion yuan, 1,649 billion yuan, and 2,314 million yuan respectively, and net profit of 193 million yuan, 220 million yuan, and 301 million yuan respectively. The corresponding PE is 20.0X, 17.6X, and 12.8X respectively. For the first time, coverage gave Wuyang Parking a “increase in holdings” rating. Risk factors: financial risk, risk of production capacity falling short of expectations, risk of increased market competition, risk of parking project construction falling short of expectations, risk of impairment of goodwill, risk of policy changes, risk of fluctuations in raw material prices, risk of slowing macroeconomic growth