Incident: Wuyang Parking released the 2019 performance forecast: The company expects to achieve net profit attributable to shareholders of listed companies in 2019 between 155 million yuan and 190 million yuan (13,0995 million yuan last year), an increase of 18.33% to 45.04% over the same period last year. The company's application for a non-public offering of shares was approved by the China Securities Regulatory Commission on January 7. The non-public offering of no more than 143,126,097 new shares was not more than 143,126,097 shares. The impact of non-recurring profit and loss on the company's net profit is estimated to be about 8 million yuan. Commentating that the profit growth rate for the full year of 2019 was 18.33% to 45.04%. The overall development of the garage business is improving. The upper limit of the company's 2019 full-year performance forecast is close to our previous forecast, and the lower expected limit is nearly 40 million yuan below our expectations. The large difference between the upper and lower limits of expectations is mainly due to the fact that the confirmation and delivery of parking equipment orders for the main business is related to the progress of project construction. There is some uncertainty about the pace of equipment installation time. Some orders for the fourth quarter may be extended to the first quarter, while the cost items have been confirmed according to the procurement cost of raw materials and the order progress. Since this year, the number of new orders added to the company has continued to rise. The number of orders in hand is full. According to the established business plan, the overall development of various businesses is improving, and the performance of the garage sector is growing steadily. The approved increase in parking equipment production capacity and project investment capacity. The approval of the company's non-public stock offering plan will promote the company's expansion of parking operations and increase the release of production capacity. This private fundraising plan will add 40,000 units/year of three-dimensional parking equipment production capacity at the Xuzhou and Dongguan bases, further improve intelligent products and research and development of the three-dimensional garage industry, enhance the company's overall R&D strength, and seize resource opportunities by expanding the scale effect. The approval of the fixed increase will help the company closely lay out the medium- to long-term development strategy of “intelligent manufacturing+parking resources+the Internet” to be guaranteed. Profit forecasts and valuations estimate that the company will achieve net profit of 206 million yuan, 289 million yuan and 388 million yuan in 2019-2021, with year-on-year increases of 57.39%, 40.10% and 34.50%. The current market value is 4.415 billion yuan, corresponding to 21 times the 2019 valuation and only 15 times the corresponding valuation in 2020. Considering that the urban parking industry is in a stage of rapid growth where market demand and policy dividends are released, and that the company has outstanding advantages in the gradually maturing three-dimensional garage industry, has strong growth potential and is still low in valuation, it maintains a “buy” rating. Risks suggest that the macroeconomic downturn brings risks such as worsening capital liquidity, major changes in industrial policy, or sharp increases in raw material prices.