1. There is a huge gap between the supply and demand of parking spaces, and the industry has great potential. In 2018, the number of motor vehicles owned in China reached 327 million. According to international urban construction experience, the number of parking spaces should reach 1.1-1.3 times the number of vehicles owned, while the ratio of cars to parking spaces in China's large cities is about 1:0.8 and in small and medium-sized cities is about 1:0.5. The speed of parking space construction in China seriously mismatches the growth rate of car ownership, and demand is expected to continue to grow in the future. In particular, in a situation where urban land resources are becoming increasingly scarce, higher demands are placed on intensive use of land resources. Compared with traditional parking spaces, mechanical parking equipment has the advantages of a small floor area and high land utilization rate. It has become an effective way to solve the problem of urban parking difficulties, and has great potential in the future. 2. Industrial policy is making a comeback. The company belongs to the first tier of parking manufacturing enterprises, and high growth can be expected. In recent years, the state has successively introduced a series of policies to give the mechanical parking equipment industry greater support in terms of financing, planning, construction, operation, and management. The number of new mechanical parking spaces added each year increased from 232,000 in 2010 to 865,000 in 2018, with a compound annual growth rate of 13%. At the same time, as the economy continues to weaken, the recent Politburo meeting once again promoted the construction of urban parking lots as a priority issue and included this in the amount of special debt. This move will further promote the rapid development of the industry. Wuyang Parking wholly owns two first-tier companies in the industry, Shenzhen Weichuang and Shandong Tianchen. The north-south layout has advantages in land cities and transportation costs, and focuses on high-end intelligent parking garages. It is more in line with the future development direction dominated by the government. The company's advantages are obvious. 3. Actively promote parking resource business, and the stock market has great potential for development. In 2018, the company changed its strategic thinking and formulated a medium- to long-term strategy of “intelligent manufacturing+parking resources+Internet”. Currently, the company has about 46,000 parking spaces, and will continue to invest on a large scale in the next few years. On the one hand, urban parking space resources are tight. Future parking space prices and parking space utilization rates are expected to increase steadily. Combined with operating leverage effects, the future is expected to bring very good profit elasticity to the company; secondly, value-added services have room to look forward to. By using existing parking resources for development, possible value-added services, including charging stations, can be expected to have great potential to explode in the future, and are optimistic about future development prospects. Performance forecast and rating: The company's net profit for the company in 2020-2021 is expected to be 259 million/355 million, corresponding to PE 20 times /15 times, covering the “buy” rating for the first time. Risk warning: The development of parking operations falls short of expectations; major shifts in industrial policy have taken place